Oil below $34, China’s stock market plunges 7% pushing up yen

The dominant themes in the markets today were China and oil. Stock markets in China tumbled 7% today and the Chinese Yuan saw its biggest one-day weakening since the August devaluation.

USD/CNY was fixed higher than expected and risk assets sold off hard as a result.

Hong Kong’s Hang Seng market, which isn’t subject to the closure of mainland markets following another 7 per cent tumble in the CSI 300, has declined as much as 3.1 per cent to its lowest since July 2013.

In Japan, the Nikkei 225 is down 1.9 per cent, while South Korea’s Kopsi is off 1 per cent and Australia’s S&P/ASX 200 is down 1.6 per cent.

S&P 500 futures are pointing south by 1.2 per cent, after the US benchmark fell by 1.3 per cent overnight.

In currencies, the Australian dollar is down 0.7 per cent, a fourth straight decline, to $0.7025, a two-month low.
Meanwhile, the safe haven yen is up 0.4 per cent at 117.97 per dollar, the highest since mid-August.

Gold is up 0.8 per cent at $1,101.78 an ounce.

The ripple effects from China’s market turmoil – both equity and currency also affected oil prices. Brent crude oil has tumbled as much as 3.3 per cent to $33.09, a new low going back to 2004.

The post Oil below $34, China’s stock market plunges 7% pushing up yen appeared first on FXTM Blog.

Source:: Oil below $34, China’s stock market plunges 7% pushing up yen

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