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The Chinese equities meltdown added more concerns about the global financial market

Discussion in 'Current Market Sentiments' started by fx-recommends, Jan 7, 2016.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
    Likes Received:
    China closed stocks trading today, after CSI 300 tumbled 7% applying its new regulations which have been imposed, after last August sell-off.

    PBOC defied the capital outflows probability by sending by setting USD/CNY at 6.5646 today to be at its highest level in the recent 6 years, with continued POBC's injections in the financial markets to restore confidence.

    POBC indicated today that the Yuan is to respect the market forces and it has 2 ways to move in 2016 not only one way.

    While China Securities Regulatory Commission managed to put new rules to be enact next week to restrict the selling pressure by limiting the Major shareholders' selling of any listed company to only 1% a day each 3 months and they should mention any of their selling of shares 15 days earlier.

    While the Chinese Yuan is still suffering from the odds of watching economic slowdown in China and further easing measurements by POBC, the Japanese yen could gain benefits from this suffering to replace the Yuan as an Asian competitive reserve currency, with no signal yet from BOJ to take further easing steps.

    JPY could take the market participants' attention in the first trading week of the year, as this low cost financing currency usually gains benefits by unwinding of the carry trades during the risk-off sentiment.

    Have a good day

    Walid Salah El din
    Senior Market Analyst
    Skype : chief.economist.walid

    Tel: UK. +44 1138590277
    Mob: EGY. +20 1224659143

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