19 Jan 2015
Market Movers: Chinese regulators cause stocks to decline drastically – TDS
FXStreet (Barcelona) - The TD Securities Team shares the performance of the market during the Asian session, noting that the stance of the Chinese regulators against margin trading for few brokers send the Chinese stocks to levels not seen since 2009.
Key Quotes
“Ahead of tomorrow’s China Q4 GDP release and slew of other activity measures, news that regulators are going to rein in margin lending at three of the biggest securities firms saw Chinese stocks drop sharply. Although the 6.5% decline is the largest since the declines of 2009, most asset markets dismissed these moves.”
“Fixed income markets are generally better offered and curves are steeper. NZGB 2yrs are 1bp lower, NZGB 10yrs are +6bps while ACGB 3yrs are +5bps and ACGB 10yrs are +8bps. There was no trading of US Treasuries in Asia with the Martin Luther King holiday today in the US.”
“In the currency markets the USD is mixed vs its G10 peers. The CHF is 0.1% weaker, but the NOK and SEK are the worst performers, -0.2% and –0.4% respectively.”
“Brent crude remains closer to the highs of the past 5 days, but oil is off 0.75% today to US$49.80. Gold too is weaker, at US$1277, off US$3, copper is 0.3% weaker and iron ore futures are down 0.8%.”
“Lastly in equities, most indices are performing well and in the green other than China stocks—Japan is +0.9%, ASX +0.2% (was +1.2% earlier in the session) and Indian stocks are +0.5%. US equity futures are down smalls , but close to unchanged.”
Key Quotes
“Ahead of tomorrow’s China Q4 GDP release and slew of other activity measures, news that regulators are going to rein in margin lending at three of the biggest securities firms saw Chinese stocks drop sharply. Although the 6.5% decline is the largest since the declines of 2009, most asset markets dismissed these moves.”
“Fixed income markets are generally better offered and curves are steeper. NZGB 2yrs are 1bp lower, NZGB 10yrs are +6bps while ACGB 3yrs are +5bps and ACGB 10yrs are +8bps. There was no trading of US Treasuries in Asia with the Martin Luther King holiday today in the US.”
“In the currency markets the USD is mixed vs its G10 peers. The CHF is 0.1% weaker, but the NOK and SEK are the worst performers, -0.2% and –0.4% respectively.”
“Brent crude remains closer to the highs of the past 5 days, but oil is off 0.75% today to US$49.80. Gold too is weaker, at US$1277, off US$3, copper is 0.3% weaker and iron ore futures are down 0.8%.”
“Lastly in equities, most indices are performing well and in the green other than China stocks—Japan is +0.9%, ASX +0.2% (was +1.2% earlier in the session) and Indian stocks are +0.5%. US equity futures are down smalls , but close to unchanged.”