Chinese equities surge following Chinese Regulators actions & US Forex market increases.
July 9, 2015 8:49 am
Chinese equities surged on Thursday after the Chinese securities regulator banned shareholders with large stakes in listed companies from selling their holdings, this is Beijing’s most drastic step yet to halt a sell-off that has agitated global financial markets.
A temporary halt in Chinese’s shares saw the CSI300 index of the largest listed companies in Shanghai and Shenzhen jumped 6.37% to 3896.36 in morning trading, while the Shanghai Composite Index gained 5.3% to 3714.84. Both indices had previously tumbled around 6 to7% on Wednesday as sellers rushed to the exit on fears of a slowing Chinese’s economy.
Over 30% has been wiped off the value of Chinese equities since mid-June, and for some investors, the fear that China’s market mayhem may destabilize the financial system and could now be a bigger risk than the Greek crisis.
Over in the FX market the U.S. dollar gained 0.6% against the yen at 121.41 overnight, a striking distance between the seven-week low of 120.41 it reached in Asian trading hours when it was hit 1.5%. The greenback’s overnight fall against the yen helped the euro, which rallied to $1.1082, moving further away from it one-month low of $1.0916 which occurred on Tuesday.
The Australian dollar gained 0.6% against its US counterpart to $0.7473 having been as low as 0.73725. Commodities also felt the uplift from China’s decision to halt the selloff in its equity markets, with U.S. crude adding 1.6% to $52.48 per barrel, however the U.S oil benchmark has still fallen almost 8% so far this week. Copper on the London Metal Exchange rose by 0.9% to $5,569 a tonne after hitting a six-year trough of $5,240 a tonne on Wednesday.
UK equities climbed this morning, led by mining firms after a small rally in metal prices, spurred by the rise Chinese stocks. Rio Tintos shares are up 2.02% at 2532 with today’s highest riser Kazakhmys +3.18% at 189.0 the largest faller on the FTSE 100 is Vedanta falling 5.49% to 446.8 after going ex dividend.
Chinese equities surged on Thursday after the Chinese securities regulator banned shareholders with large stakes in listed companies from selling their holdings, this is Beijing’s most drastic step yet to halt a sell-off that has agitated global financial markets.
A temporary halt in Chinese’s shares saw the CSI300 index of the largest listed companies in Shanghai and Shenzhen jumped 6.37% to 3896.36 in morning trading, while the Shanghai Composite Index gained 5.3% to 3714.84. Both indices had previously tumbled around 6 to7% on Wednesday as sellers rushed to the exit on fears of a slowing Chinese’s economy.
Over 30% has been wiped off the value of Chinese equities since mid-June, and for some investors, the fear that China’s market mayhem may destabilize the financial system and could now be a bigger risk than the Greek crisis.
Over in the FX market the U.S. dollar gained 0.6% against the yen at 121.41 overnight, a striking distance between the seven-week low of 120.41 it reached in Asian trading hours when it was hit 1.5%. The greenback’s overnight fall against the yen helped the euro, which rallied to $1.1082, moving further away from it one-month low of $1.0916 which occurred on Tuesday.
The Australian dollar gained 0.6% against its US counterpart to $0.7473 having been as low as 0.73725.
Commodities also felt the uplift from China’s decision to halt the selloff in its equity markets, with U.S. crude adding 1.6% to $52.48 per barrel, however the U.S oil benchmark has still fallen almost 8% so far this week. Copper on the London Metal Exchange rose by 0.9% to $5,569 a tonne after hitting a six-year trough of $5,240 a tonne on Wednesday.
UK equities climbed this morning, led by mining firms after a small rally in metal prices, spurred by the rise Chinese stocks. Rio Tintos shares are up 2.02% at 2532 with today’s highest riser Kazakhmys +3.18% at 189.0 the largest faller on the FTSE 100 is Vedanta falling 5.49% to 446.8 after going ex dividend.
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