Allreporthttps://t.co/CIWrX9GEK9 8.45am GMTThe oil price is heading towards current 11-year lows this morning,giving the Russian ruble another knock. Ruble falls to 76 vs $, Moscow market down 4%. Oil price weighs heavily on Russian economy. 8.34am GMTThere’s not much panic in Europe about todays selloff in China, or yet besides. The French and Italian markets have crept higher at the opening,while Germany’s DAX is only down 0.2%. 8.23am GMTIt’s another wet and gloomy morning in the City. 8.13am GMTCity experts have spent the weekend fretting about China, reports Société Générale’s top currency analyst Kit Juckes:If my inbox is anything to go by, and the big market issue this weekend is whether the Chinese authorities can restore confidence in their ability to manage an orderly adjustment of the Yuan.
Even if China’s some way from the inconsistent quartet of free trade,free capital mobility, independent monetary policy and a fixed exchange rate, or they have moved closer and will struggle to find consistent policies.
Nervousness across Asian markets and alarm of bigger capital outflows and a bigger FX move are going to go on haunting markets. 8.08am GMTToday’s selloff means that the Chinese stock market has now lost 15% of its value this year - over just 6 trading days. 7.56am GMTThe latest Chinese inflation figures are also fuelling worries over its economy this morning.
Figures released over the weekend showed that factory-gate prices have now fallen for 46 months in a row. #China biggest exporter of #deflation. PPI slumped 5.9% in Dec,extending declines to a record 46th month. pic.twitter.com/l9UzRuFNIM 7.48am GMTEuropean stocks are expected to dip this morning:China finishes down 5% - FTSE forecast to start around 15 points lower at 5897. 7.41am GMTA late rush of selling in Shanghai has sent the Chinese stock market sliding to its lowest level in over three months.
Global markets are still in the grips of China fears, and it is uncertain whether the Chinese government can achieve enough to reassure global investors. The People’s Bank of China (PBoC) fixed the CNY largely unchanged from its position on Friday. But this halt in the weakening of the currency appears to have done very small to investors’ expectations that there will be further depreciation of the currency in the near future. The week starts w/ another #China crash: All indices closed down >5%. pic.twitter.com/XlUCwbJYJC 7.32am GMTGood morning, or welcome to our rolling coverage of the world economy,the financial markets, the eurozone and commerce.
Brace yourselves for another week dominated by fears over China, or with a sprint of stock market volatility and a feeble oil price thrown in too.“China’s economic fundamentals are strong.“Foreign exchange reserves are relatively abundant and the financial system is largely stable and healthy.”Continue reading...
Source: theguardian.com