Asia bloodbath

24 August, 2015

Bears have mauled risk assets in Asia, with commodities, equities and commodity-backed currencies falling victim to the risk-adverse sentiment in the market. The global panic was sparked by fears about the health of China’s all-important economy after persistent weakness in recent economic numbers and extreme volatility in its stock market.

As we explained this morning, the aussie, looine (Brent crude dropped below $45/bbl for first time since March 2009) and kiwi have felt the brunt of the bears attack on the FX market - the Bloomberg Commodity Index fell to its lowest level since 1999 - in Asia and not a single major equity market has been able to escape the bloodbath – S&P 500 futures are down around 3% at the time of writing.

The Shanghai Composite is down on the year

China is at the centre of the massacre, with the Shanghai Composite down almost 8.5% at the time of writing, despite reports that the government is going to allow state pension funds to invest in the stock market for the first time. Some were expecting the PBoC to cut interest rates again over the weekend in response to last week’s sell-off but it didn’t, which could be compounding the index’s problems. It has now completely erased all of its gains this year; in only June the Shanghai Composite was up around 60% (most of these gains were wiped out in late June/early July and the most recent sell-off which began last Monday).


Source link  
Markets turn focus towards Trump address to Congress

On the evening of Tuesday, February 28th, US President Trump is slated to give a major address to a joint session of Congress in lieu of the usual State of the Union address...

FOMC meeting minutes signal rate hike fairly soon – dollar unimpressed

The minutes from the most recent FOMC meeting three weeks ago – the first such meeting since Donald Trump’s presidential inauguration – were released on Wednesday afternoon...

Crude oil look set to resume bullish trend

Oil prices have been coiling for several weeks now with both contracts spending most of their time in a tight four dollar range...


US stocks could rise 6-7% further before potential crash

The US stock markets hit repeated new record highs last week. The positive sentiment has continued at the start of this week, with Asian and European markets drifting higher in an otherwise quiet day. US index futures point to further gains at the open later on...

Fed gives little indication of interest rate trajectory

The Federal Open Market Committee (FOMC) meeting has come and gone, and little has changed in the financial markets as a direct consequence. In unanimously deciding to keep interest rates unchanged, as widely expected...

Surging equities at risk ahead of earnings season

While earnings season has started on a very positive footing, however, banks and other financial companies were already expected to shine more than others due to rising interest rate expectations. As non-financial companies begin to report in the coming weeks...


Gold rebound heading for major resistance

For more than two weeks, the price of gold has been in a strong rebound from its late-December bottom around the $1125 level. This rebound follows a sustained drop in price that began from the July highs around $1375 and followed-through to the December lows...

Crude oil at higher plateau ahead of US inventory data

Crude oil prices have recently been lifted to year-to-date highs on a successful agreement to cut oil production and control supply among major OPEC and non-OPEC oil producers...

Gold rebounds off key level ahead of busy week

As we reported the possibility on Friday of last week, gold did indeed fall further lower this week. The rising dollar, yields and US equity prices all weighed on the appeal of the buck-denominated, noninterest-bearing and perceived safe-haven precious metal...

  


Share: