The Chinese Stock- Market has made a turn around it seems.
According to analyst "Market Watch".
The report released today by Market Watch - www.MarketWatch.com - and reports a rise in China stocks finally Recover's from the economical downturn that we all been hit by over the last few years.
Market Watch front man reported about this yesterday but claims that the worst is yet to come. In today's ever changing markets, anything can happen at anytime in any part of the world to anyone, rich or not. Some of the world's largest businesses has been hit as hard as small businesses.
Read the report here:-
The report released today by Market Watch - www.MarketWatch.com - and reports a rise in China stocks finally Recover's from the economical downturn that we all been hit by over the last few years.
Market Watch front man reported about this yesterday but claims that the worst is yet to come. In today's ever changing markets, anything can happen at anytime in any part of the world to anyone, rich or not. Some of the world's largest businesses has been hit as hard as small businesses.
Shares in Asia mostly recovered Tuesday, as the Chinese yuan stabilized for the third straight day, though trading remained choppy on the mainland stock market.
The Shanghai Composite Index SHCOMP, +0.20% rose 0.4% to 3028.04, but it traded up and down as much as 1% from its previous close.
China’s main stock market fell 5.3% on Monday amid fears that Chinese authorities are unable to stem recent turmoil in its financial markets and a slowdown in the broader economy.
Elsewhere, the Australian S&P/ASX 200 XJO, +0.55% fell 0.1%, South Korea’s KospiSEU, +1.06% was flat and Hong Kong’s Hang Seng Index HSI, -0.89% rose 0.2%. In Japan, where markets were closed for national holiday Monday, the Nikkei Stock Average NIK, +1.95% tracked Monday’s regional losses, falling 2%.
The Chinese yuan continued to stabilize Tuesday, though the central bank guided the currency slightly weaker. Earlier, Chinese authorities fixed the yuan at 6.5628 per U.S. dollar compared with 6.5626 Monday.
China’s onshore yuan, which can trade 2% above or below the fix, last traded at 6.5733 per dollar, weaker than 6.5695 at Monday’s close. The currency reached a five-year low of 6.5956 last week.
The offshore currency hit its strongest level since the beginning of the year on Tuesday, and last traded at 6.5705. Late Monday, the offshore yuan, which trades freely, strengthened by as much as 1.5% to 6.5827 to one U.S. dollar compared with the previous close. That helped narrow the gap between the onshore and offshore yuan to its tightest in two months.
Traders say the offshore yuan has been strengthening as state-owned Chinese banks buy the currency, a sign of intervention by China’s central bank. That has limited the supply of the offshore yuan, tightening liquidity and sending the rate at which Hong Kong banks lend yuan to each other overnight to a record high of 66.815% on Tuesday. The rate jumped to 13.4% on Monday from 4% Friday.
“A lot of channels bringing money from onshore to offshore market have been blocked, which also contributes to the shortage of yuan in Hong Kong,” said Tommy Ong, head of Wealth Management Solutions at DBS in Hong Kong.
The region’s stock gains Tuesday offer some reprieve after the turmoil of last week, triggered by a faster-than-expected depreciation of the yuan, when the currency fell 1.5%. Stock regulators also came in last week to calm trading, saying they would do away with a circuit breaker that exacerbated selling and extend a ban of large shareholders from selling shares.
Still, China shares are now roughly just 3% above their summer low on Aug. 26, after a three-month rout wiped trillions of U.S. dollars from the market and sparked a global selloff. The Shanghai Composite is off more than 40% from its June peak.
 |
Traders and analysts say they remain on edge, as Chinese authorities contend with the prospect of increasing capital outflows from the world’s second largest economy.
“For now, it may seem like the tweaks that Beijing makes will continue to affect global market mood,” wrote Bernard Aw, market analyst at brokerage IG, in a morning note.
Overnight, the Dow Jones Industrial Average eked out a gain, rising 0.3%, after stocks veered between gains and losses throughout the session.
Oil prices in the U.S. dropped below $32 a barrel for the first time since 2003, pummeled by a stronger dollar and worries over Chinese demand. The slide battered shares of energy companies, with S&P 500 energy stocks down 1.8%.
Brent crude oil, the international benchmark, fell 1.1% to $31.51 a barrel in Asia.
Gold prices were off 0.1% at $1,095.70 a troy ounce. They have bounced by more than 3% year to date as investors seek haven assets amid the China volatility.
Report by MarketWatch.
