Stabilisation

25 August, 2015

Monday was the day when the fear of the unknown truly gripped markets, with diminished August trading volumes serving to massively exacerbate moves. The major volatility stemmed from the kiwi at lunchtime during European trade, which in turn triggered a more than 3 big-figure move on USDJPY. It makes little sense to try and rationalise these moves as they are a function of stressed and illiquid markets. That said, it’s clear that markets are waking up to the implications of a sustained economic slowdown in China, combined with a government that is stepping back from intervention, including in the stock market where the rally they initiated is now. Overnight we’ve seen Chinese stocks continue to fall (although only by 7.5% this time) although most other Asian equity markets are in positive territory. Contagion and China are not normally words that go together. The correlation between the Shanghai composite index and the MSCI developed market index over the past two years has been exactly zero (rolling 1-month correlation). So the fact that we’ve seen correlations rise drastically over the past 2-3 weeks reflect a dramatic sea-change versus recent history.

For today, data will prove to be only a minor distraction from the fragile tone to markets. The German IFO data is seen at 08:00 GMT, with U.S. consumer confidence and provisional services PMI seen later the day. FX at least has seen a calmer Asia session, with a decent recovery in the Aussie dollar seen back above the 0.72 level and the yen continuing to weaken against the dollar after yesterday’s dramatic moves.


Source link  
Why U.S. markets are under pressure

Global markets are on the rise on Wednesday, adding more than 1.2% on the MSCI Asia ex Japan index. Japanese Nikkei jumped by 2%. Chinese...

Dow recovers after 500 points decline

Stocks closed higher Monday as major indexes bounced back from earlier losses as renewed confidence in the strength of the U.S. economy offset lingering...

Pound rallied, stocks declined

The U.K. main stock index closed lower Thursday, weighed down by weakness for resource stocks and banks and a strong pound as the outline of a key agreement...


Oil slips as U.S. inventories swelled

Oil prices slipped on Thursday after U.S. crude inventories swelled to their highest level since December 2017 amid concerns of an emerging global glut, although...

Crude's Collapse Is Sending Shockwaves

Investors have gone from contemplating the prospect of oil at $100 to sub-$50 in less than two months. No wonder global markets are playing catch-up....

Dollar growth pushed down stock indices

Monday was a hard day for the financial markets. American DJI lost more than 2.3% and S&P500 decreased by 2.0%. As in previous weeks, the main pressure...


U.S. stocks recover after elections

Preliminary estimates of the U.S. election results support a positive mood on the world markets, reducing the demand for protective assets and causing...

Cautious mood has returned to stocks

American markets ended trading on Wednesday with a slight increase. Asian bourses also experienced growth at the opening, but it was quickly...

Emerging markets rebound seems over

Asian markets have turned to a decline with a renewed force. After the rebound of last week, the index MSCI Asia ex Japan loses 1.2% and is only...


In the past 24 hours Bitcoin has lost -5.28% and reached $3312.92380272. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.0395% and is now at $1.1371. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -8.85% and is now at $85.9938953935. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets92%
2FXTMFXTM88%
3HYCMHYCM87%
4Alfa-ForexAlfa-Forex86%
5FxProFxPro85%
6FIBO GroupFIBO Group84%
7OctaFXOctaFX83%
8HotForexHotForex82%
9AvaTradeAvaTrade80%
10FXCMFXCM78%
  


Share: