Regulator Action Sends Chinese Stocks Plummeting, Euro Continues to Feel Fallout of SNB Decision
January 19, 2015 7:30 am
Chinese shares recoiled on Monday after regulators took steps to rein in speculative lending there, while investors everywhere were wary of being disappointed by the latest efforts at policy stimulus in the Euro zone. U.S. stocks rallied on Friday after five sessions of losses, helped by a sharp rebound in energy shares and data that signalled the U.S. economy was on track for solid growth. The Dow closed 150 points higher at 17,511, the S&P 500 gained 26 points to close at 2,019.
In Europe, the common currency was shaky on the Swiss franc at 1.0020 after tumbling 17% last week when the Swiss National Bank abandoned its cap on the Franc. All this uncertainty kept the Euro pinned at $1.1555, having hit an 11-year low of $1.14595 on Friday. The Dollar was a shade softer against the safe-haven Yen at 117.00, but a touch firmer on a basket of currencies around 92.669.
Oil prices had a soft tone as Brent crude futures eased 26 cents to $49.91, while U.S. crude lost 28 cents to $48.41 a barrel.
Within the equity space, it seems to be Resource stocks that are under pressure this morning, with the majority of the sectors’ players down anywhere between 0.5% and 4% in early trade.
Chinese shares recoiled on Monday after regulators took steps to rein in speculative lending there, while investors everywhere were wary of being disappointed by the latest efforts at policy stimulus in the Euro zone. U.S. stocks rallied on Friday after five sessions of losses, helped by a sharp rebound in energy shares and data that signalled the U.S. economy was on track for solid growth. The Dow closed 150 points higher at 17,511, the S&P 500 gained 26 points to close at 2,019.
In Europe, the common currency was shaky on the Swiss franc at 1.0020 after tumbling 17% last week when the Swiss National Bank abandoned its cap on the Franc. All this uncertainty kept the Euro pinned at $1.1555, having hit an 11-year low of $1.14595 on Friday. The Dollar was a shade softer against the safe-haven Yen at 117.00, but a touch firmer on a basket of currencies around 92.669.
Oil prices had a soft tone as Brent crude futures eased 26 cents to $49.91, while U.S. crude lost 28 cents to $48.41 a barrel.
Within the equity space, it seems to be Resource stocks that are under pressure this morning, with the majority of the sectors’ players down anywhere between 0.5% and 4% in early trade.
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