Tag Archives: Yuan
Weaker Chinese yuan (CNY) pressures base metals as high inventories weigh on copper
Key points: Base metals experienced declines on Tuesday, driven by a combination of a weaker Chinese yuan (CNY) and high physical inventories. The depreciation of Chinese yuan against the US dollar reaching its lowest in nearly seven months, reduced the purchasing power of Chinese buyers. This, coupled with weak demand, exerted pressure on metals likeContinue Reading
Asian assets cautious ahead of US CPI data and Fed meeting
Key points: Emerging Asian markets were finely balanced on Tuesday as traders awaited the release of U.S. inflation data and the Federal Reserve’s policy meeting, which are set to influence future rate expectations. The Fed’s next policy decision, expected on Wednesday, is anticipated to result in policy rates remaining steady for the seventh consecutive meeting.Continue Reading
Hong Kong stocks surge on rate cut prospects; mixed performance in China
Key points: On Monday, Hong Kong’s stock market experienced an observable surge, with the benchmark Hang Seng Index posting its best daily performance in a month. This optimism was largely driven by the anticipated rate cut from the European Central Bank (ECB), which is expected to trim rates by a quarter point to 3.75% onContinue Reading
Week ahead: Wall Street sees declines as treasury yields rise
Wall Street endured a tough week, marked by significant declines driven by rising Treasury yields and hawkish comments from Federal Reserve officials. The market sentiment was further dampened by higher-than-expected inflation data from Germany and Australia, escalating global inflation concerns. As the market braces for the key US personal consumption expenditures (PCE) inflation data, dividedContinue Reading
Copper prices rebound on optimism over Chinese demand
Key points: Copper prices climbed on Wednesday, driven by optimism over increased demand from China, being the top copper consumer in the world. Three-month copper on the London Metal Exchange (LME) rose 0.5% to $4.79 per pound, while the most-traded July copper contract on the Shanghai Futures Exchange (SHFE) gained 0.3% to $5.32 per pound. Continue Reading
China’s yuan dips as PBOC sets new midpoint
Key points: On Tuesday, China’s yuan slipped slightly as traders remained cautious ahead of key inflation data from major global economies. These reports could provide insights into the short-term trajectory of global interest rates. SEE: The offshore yuan (USDCNH) trading at 7.26184 as seen on the VT Markets app. PBOC weakens rate of yuan inContinue Reading
Aussie climbs as China considers buying unsold homes
Key points: China is contemplating a policy move where local governments would purchase millions of unsold homes. This initiative aims to stabilise the distressed real estate sector, which has seen home sales plummet by nearly 50%, leaving a vast inventory of unoccupied properties. Australian dollar rises on optimism Picture: The AUD/USD pair is moving upwards.Continue Reading
