Asia starts another week in red

11 January, 2016

The Shanghai stock exchange has started the week on the back foot once again posting an over 5% decline as investors continue to fret over a number of issues facing investors in Chinese stocks. Asian economies are slowing, in particular China as evidenced once again over the week end and it’s how the authorities go about dealing with this that is spooking the markets. Whilst they may have plenty of tools at their disposal they are faced with a two pronged problem of pursuing both economic and market reform agendas. Global stock markets have had a terrible start to 2016 with the Dow in the US having its worst January start since the index was formed. This morning European indices are expected to continue in their poor vein of form with the FTSE 100 due to open below the 5900 level and so to the downside all eyes will be on the 5870 and then the 5770 level which was the low formed during last August’s falls in equity markets.

The economic calendar is quiet today but a focus will be on the Bank of England this Thursday especially since a great deal of bearish sentiment has emerged in respect to the UK economy, with even the Chancellor warning of storm clouds ahead. GBPUSD has been a one way ticket lower ever since it broke below the 1.5000 level.


Source link  
Peaked trade optimism?

Throughout the past week, the US dollar has received support after strengthening expectations that the Fed will take an extended break after three consecutive rate cuts...

Russel 2000 doesn't support S&P500 optimism

S&P500 closed Monday at historical highs, adding 0.55% on the day close. Both expected new Fed interest rates cut and possible...

Oil drops on weak corporate data out of China

Oil prices fell on Monday after strong gains last week, as data released in China reinforced signs that its economy is slowing, though progress...


Market Sentiment Hinging On Progress In Brexit

The British parliament will vote on the Brexit agreement today at 18:00 GMT. In theory, this should be a simple vote, with a definite...

Market shows demand for yielding assets

The market shows demand for yielding assets, which in turn supports demand for the stocks and currencies of emerging markets. The main...

Yuan and Dollar as a weapon in trade wars

The US Nonfarm Payrolls on Friday could even be called boring: the report showed the preservation of a completely healthy labour market...


Disappointment with Fed and tariffs

Trump announced 10% tariffs on Chinese goods worth $300 billion since September 1, thus ending the US-China trade truce after disappointingly...

Fed pushes down stocks

Markets have started the week under pressure. Expectations that the Federal Reserve will cut interest rates by 50 points in July collapsed...

Gold updates new 6-years highs

Gold benefits from a combination of two factors: lower interest rates in debt markets and continuing hopes that the global economy...

  


Share it on:   or