Home » Weekly Forecast » Asian Markets Try to Stabilize Today

Asian Markets Try to Stabilize Today

China Stocks Close Up On TuesdayAsian equity markets tried to stabilize today as China’s markets bounced back from a shaky start to the Asian trading session. Traders are hoping that yesterday’s selloff was an anomaly

Today, the People’s Bank of China (PBOC) injected money into the domestic markets to keep borrowing costs low. The PBOC also set the value of the yuan a bit firmer than most traders were looking for. This countered the concerns that Beijing was looking to aggressively devalue its currency to aid exports.

The mainland bourse, the Shanghai Composite, the CSI 300, was up around 0.80 percent. This follows the seven percent nosedive yesterday. The Shanghai Composite (.SSEC) was fairly flat today. Today’s moves tell us the world is more connected than it was a decade ago. If investors continue to worry, then liquidity will suffer. On investor minds right now are global growth and geopolitical instability, especially with Saudi Arabia and Iran.

Looking at the rest of the Asian and Pacific rim the Nikkei 225 was up around 0.4 percent and the Australian ASX/200 was up near 0.9 percent. The South Korean Kospi was also up around 0.5 percent on the day

Overnight the Dow Jones was down 1.58 percent and the S&P 500 lost 1.53 percent. The Nasdaq Composite took a two percent it thanks to weak Chinese data. Traders were also hit with weaker than expected US Factory data.

Economic Policy to Watch Today

  • Sweden’s Riksbank has already cut rates to a record low of -0.35 percent.
  • German inflation was tepid putting pressure on the ECB to do more. Bond yields in the euro zone fell.
  • The USD/JPY pushed higher today towards 119.50 after a low of 116.67 yesterday.
  • Oil prices moved higher today as tensions in the Middle East are providing a temporary boost. The Brent contract were up about 30 cents in the Asian session to $37.51. US Crude was up 27 cents to $37.03 per barrel.

About ForexMarketz

Check Also

euro

Euro Currency is still below the Key Moving Averages

0.0 00 The euro currency formed a lower low and a lower high last week. …