China's stock market is down again
Chinese stocks fell to the lowest level seen in over a year in early trade on Monday, continuing the sell-off that began in late December.
18 January, 2016
The benchmark Shanghai Composite index opened at 2844.70, leaving the index at the lowest level seen since December 10, 2014.
From the June 12 peak of 5176.8 struck in July 2015, the index has now lost over 45%.
The daily chart below from Thomson Reuters reveals the scale of the recent sell off, something that has seen the index lose more than 20% since late December.
In recent trades it has subsequently rebounded to be down only 0.15%.
Reuters
The rebound in Chinese stocks, along with broader risk assets in Asia, has coincided with a sharp appreciation in the value of the offshore traded yuan, or CNH.
The 5-minute chart below from Investing.com reveals the sudden strengthening in offshore trade yuan that occurred earlier in the session.
Investing.com
On Monday the PBOC fixed the onshore traded USD/CNY rate at 6.5590, well below the last traded price of 6.5840 and Friday’s fixing level of 6.5637.
The renewed strength in the yuan – both onshore and offshore traded – follows news that the PBOC will start applying a reserve requirement ratio to some banks involved in the offshore yuan market from January 25 this year.
According to the PBOC, the ruling will only impact offshore traded yuan liquidity, not that in onshore markets.
By forcing some banks to hold minimum levels of yuan reserves, it may increase the cost to borrow offshore yuan short-term, making it more expensive for those looking to speculate on further yuan weakness.
About as much as you're going to get from Pravda-upon-the South Seas
ReutersInvesting.comAbout as much as you're going to get from Pravda-upon-the South Seas
NZ sharemarket falls again
The
New Zealand sharemarket fell to its lowest level in a month this
morning.
The
latest fall in the NZ stockmarket follows a huge slide in the US
markets oN Friday. Photo: AFP
17
January, 2015
The
local market today followed last Friday's slide on American markets,
which which saw the Dow Jones Industrial Average down 2.4 percent,
the S&P 500 fall 2.1 percent and the Nasdaq shed 2.7 percent.
The
benchmark NZX-50 index fell more than 100 points - or nearly two
percent - this morning, with all but two stocks falling. A short time
ago it sat at 6054, down 1.87 percent.
Markets
around the world have been rattled by plunging oil prices in recent
weeks, with prices hitting 12-year lows last week.
Persistent
fears about the outlook for the Chinese economy have been blamed for
adding to the uncertainty.
Australia
Markets Live: The bear beckons
The
horror run for Aussie shares has continued into the new week after
oil and Wall St tumbled on Friday night, while Woolies shares jump
after announcing it will dump its struggling hardware venture.
- The ASX 200 may be approaching a bear market, but brokers are generally still upbeat
- The cheers you hear are for Woolies finally dumping Masters, while Wesfarmers commits Bunnings to the UK
- Bond traders are now pricing in a rate cut by June
Iran sanctions: Middle East stock crash wipes £27bn off markets as Tehran enters oil war
Prospect
of the Islamic Republic pumping an additional 500,000 barrels a day
sends stock markets in Dubai and Saudi Arabia into tailspin
17
January, 2016
Stock
markets across the Middle East saw more than £27bn wiped off their
value as the lifting of economic sanctions against Iran threatened to
unleash a fresh wave of oil onto global markets that are already
drowning in excess supply.
All
seven stock markets in the Gulf states tumbled as panic gripped
traders. London shares are now braced for a second wave of crisis to
hit when they open on Monday morning after contagion from China sent
the FTSE 100 to its worst start in history last week.
Dubai's
DFM General Index closed down 4.65pc to 2,684.9, while Saudi Arabia's
Tadawul All Share Index, the largest Arab market, collapsed by 7pc
intraday, before recovering to end down 5.44pc at 5,520.41, its
lowest level in almost five years.
The
Qatar stock exchange, fell 7.2pc to close at 8,527.75, and the Abu
Dhabi Securities Exchange shed 4.24pc to finish at 3,787.4. The
Kuwait market returned to levels not seen since May 2004 as it slid
3.2pc lower, while smaller markets in Oman and Bahrain dropped 3.2pc
and 0.4pc respectively.
The
Iranian stock index gained 1pc, making it one of the best performing
markets in the world with gains of 6pc since the start of the year.
The
dramatic moves came following the historic report from the UN nuclear
watchdog, which showed that Iran has met its obligations under the
nuclear deal, clearing the way for the lifting of sanctions.
The
Vienna-based International Atomic Energy Agency issued the landmark
document late on Saturday evening, sparking mayhem as markets opened
on Sunday, the first day of trading in the Middle East.
Hassan Rouhani
Implementing #JCPOA not a detriment to any country. Our friends are happy & our rivals need not worry. We're no threat to any nation/state.
The
stock markets in Dubai and Saudi Arabia have been plunged into a
painful bear market, losing 42pc and 38pc respectively, ever since
Saudi Arabia decided to ramp up oil production in November 2014.
Oil
prices fell below $30 for the third time last week as traders
prepared for the prospect of Iranian oil flooding global markets.
The
Islamic Republic has vowed to return its oil production to
pre-sanction levels that stood above 3m barrels a day.
“The
oil ministry, by ordering companies to boost production and oil
terminals to be ready, kicked off today the plan to increase Iran’s
crude exports by 500,000 barrels,” the official Islamic Republic
News Agency reported on Sunday, citing Amir Hossein Zamaninia, deputy
oil minister.
Fears
that the Islamic Republic could quickly ramp up production sent Brent
crude falling by 3.3pc to $29.43 on Friday - matching lows last seen
in 2004.
West
Texas Intermediate also slipped back to $29.60, a decline of 4.5pc.
Standard
Chartered became the latest bank to raise fears over the oil price by
downgrading its outlook to $10, following the likes of Goldman Sachs,
RBS and Morgan Stanley.
The
price of oil was $115 per barrel 18 months ago until Saudi Arabia
greatly increased production to crush rivals in the US and Russia.
Oil
price crash means petrol could become cheaper than bottled water
RBS Economics
18 months ago a barrel of #oil bought you a bottle of Pol Roger 2004 champagne. Today it gets you Tesco Finest.
The
relentless fall in oil has seen prices return to levels not seen
since 2004.
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