Gold continues gains as investors seek safe havens... The yuan is falling again...
Gold continues gains as investors seek safe havens
Gold is the main success story right now as concern over equities and bonds supersedes the ongoing spectre of an increase in US interest rates, which would typically mean gold prices dropping.
Equity markets are broadly lower Wednesday with Asian indexes, generally less exposed to the impact from Brexit, suffering due to lower leads from Wall Street and declining oil prices. Only Shanghai closed higher, although choppy trade meant it could just as easily have closed lower.
European markets are down too as the British pound hit a new 31-year low amid Brexit fears. Italy’s banks are the focus for many though with some lenders warned by the ECB that they must cut their exposure from bad loans.
Wall Street and Toronto are expected to open lower.
The yuan is falling again
While the pound may be the talk of the currency markets with a new 31-year low this morning, there is also a renewed slide for China’s pressured currency.
The yuan is down 1.3 per cent against the US dollar since the Brexit vote, small compared to the 12 per cent drop for the pound, but CNN reports that China’s currency suffered its largest ever quarterly loss against the dollar and is trading at a near 6-year low. Analysts predict more weakening to come.
Gold is the main success story right now as concern over equities and bonds supersedes the ongoing spectre of an increase in US interest rates, which would typically mean gold prices dropping.
Equity markets are broadly lower Wednesday with Asian indexes, generally less exposed to the impact from Brexit, suffering due to lower leads from Wall Street and declining oil prices. Only Shanghai closed higher, although choppy trade meant it could just as easily have closed lower.
European markets are down too as the British pound hit a new 31-year low amid Brexit fears. Italy’s banks are the focus for many though with some lenders warned by the ECB that they must cut their exposure from bad loans.
Wall Street and Toronto are expected to open lower.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 17,840.62 (-0.61 per cent) | -0.44 per cent | +0.89 per cent |
| TSX Composite | 14,219.57 (-0.28 per cent) | -0.40 per cent | -2.56 per cent |
| Europe (at 4.30am ET) |
|||
| UK FTSE | 6,548.61 (+0.05 per cent) | +4.39 per cent | +0.20 per cent |
| German DAX | 9,447.67 (-0.89 per cent) | -6.65 per cent | -13.25 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,216.80 (+0.29 per cent) | +1.20 per cent | -19.55 per cent |
| Japan Nikkei | 15,378.99 (-1.85 per cent) | -7.24 per cent | -23.53 per cent |
| Other Data (at 4.30am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 47.83 (-0.27 per cent) |
46.49 (-0.24 per cent) |
1372.40 (+1.01 per cent) |
U$0.7687 |
| Aus. Dollar |
|||
| U$0.7441 | |||
The yuan is falling again
While the pound may be the talk of the currency markets with a new 31-year low this morning, there is also a renewed slide for China’s pressured currency.
The yuan is down 1.3 per cent against the US dollar since the Brexit vote, small compared to the 12 per cent drop for the pound, but CNN reports that China’s currency suffered its largest ever quarterly loss against the dollar and is trading at a near 6-year low. Analysts predict more weakening to come.
