Oil Prices Drop By More Than 3%, Sterling Touches 4-Month Low Against USD
September 8, 2015 6:20 am
Asian equity markets rallied on Tuesday after a six-day losing streak and USD firmed up against the Japanese Yen. However, positive reaction towards China’s export numbers (a smaller fall than expected) was muted, as a fall in Chinese imports added fears of a more sustained slowdown in the world’s second largest economy. In addition, on Monday foreign exchange reserve data revealed a record 94 billion Dollar drop in August after the PBOC efforts to steady the Yuan with its surprise devaluation. The weak data from China raised investors expectations of more policy easing. Over in Japan the Nikkei 225 fell 2.3%, extending its rebound from a seven-month low hit on Monday.
The Dollar index was little changed at 95.813 as the Dollar dipped against the Yen on Tuesday 0.2% to 119.00, reversing earlier modest gains as Asian equities markets fluctuated, sending some investors running to the safe-haven Yen.Sterling managed to rebound after the currency fell to a four-month low, driven by last week’s poor services sector report which increased doubts to whether the Bank of England would be raising interest rates any time soon. Sterling rose 0.2% to $1.5298 after hitting the four-month low of $1.5163. The Euro stood little changed at $1.11670
Oil prices fell more than 3 percent on Monday as the drop in Chinese share prices and record North Sea production added to global oversupply concerns. Brent futures rose 0.7% to $47.94 after a 3.7 percent fall on Monday.
In the UK Equity markets, Ashmore Group reported a rise in profit and revenue even as its assets under management fell to $58.9 billion at the end of June, from $75 billion a year ago. The shares are currently trading up 6.4% at 261. Moreover Betfair and Irish rival Paddy Power have agreed on a 5 billion pound merger, details of which were first announced last week, in a bid to secure the best position in Britain’s highly competitive online gambling market. Bet fair shares are trading up by around 0.5% at the moment.
Asian equity markets rallied on Tuesday after a six-day losing streak and USD firmed up against the Japanese Yen. However, positive reaction towards China’s export numbers (a smaller fall than expected) was muted, as a fall in Chinese imports added fears of a more sustained slowdown in the world’s second largest economy. In addition, on Monday foreign exchange reserve data revealed a record 94 billion Dollar drop in August after the PBOC efforts to steady the Yuan with its surprise devaluation. The weak data from China raised investors expectations of more policy easing. Over in Japan the Nikkei 225 fell 2.3%, extending its rebound from a seven-month low hit on Monday.
The Dollar index was little changed at 95.813 as the Dollar dipped against the Yen on Tuesday 0.2% to 119.00, reversing earlier modest gains as Asian equities markets fluctuated, sending some investors running to the safe-haven Yen.Sterling managed to rebound after the currency fell to a four-month low, driven by last week’s poor services sector report which increased doubts to whether the Bank of England would be raising interest rates any time soon. Sterling rose 0.2% to $1.5298 after hitting the four-month low of $1.5163. The Euro stood little changed at $1.11670
Oil prices fell more than 3 percent on Monday as the drop in Chinese share prices and record North Sea production added to global oversupply concerns. Brent futures rose 0.7% to $47.94 after a 3.7 percent fall on Monday.
In the UK Equity markets, Ashmore Group reported a rise in profit and revenue even as its assets under management fell to $58.9 billion at the end of June, from $75 billion a year ago. The shares are currently trading up 6.4% at 261. Moreover Betfair and Irish rival Paddy Power have agreed on a 5 billion pound merger, details of which were first announced last week, in a bid to secure the best position in Britain’s highly competitive online gambling market. Bet fair shares are trading up by around 0.5% at the moment.
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