Update: *SHANGHAI COMPOSITE INDEX FALLS 2.04%(AFTER BEING UP 3.2%)
And CSI Futures are tumbling...
Not a pretty week...
Shifting notavkly from the opening color that we detailed earlier..
With all eyes on Chinese FX and equity markets, following the worst start to a year for US (and Chinese) stocks in history, PBOC decided (after 7 straight days of devaluation and 7% devaluation since August) to halt the run and increase Yuan fix by a paltry 0.01% to 6.5636 (notably below yesterday's 6.5939 CNY close). Offshore Yuan is strengthening and US equity markets are jumping. Chinese equity markets (now theoretically unhampered by their circuit-breaker panic switch) are far less impressed.
PBOC fixes the Yuan a tiny bit stronger...
Offshore Yuan roller-coastered through the US session as Reuters headlines sparked selling pressure after some Treasury-selling/Yuan-tervention...but is rallying on the not bad news...
Onshore-Offshore spread has tumbled to 900pips from over 1500...
Asian stocks are set for their worst week since 2011 with some notable names in big trouble:
- *NOBLE GROUP TUMBLES 10%, EXTENDING LOSS, AFTER S&P DOWNGRADE
While China ETFs trading in US markets signal notable weakness to come for an-"limited" Chinese stock market...
Chinese stocks look set for a positive open:
- *CHINA SHANGHAI COMPOSITE SET TO OPEN UP 2.2% TO 3,194.63
- *CHINA'S CSI 300 INDEX SET TO OPEN UP 2.4% TO 3,371.87
- *FTSE CHINA A50 INDEX RISES 2.17%
And Dow Futures love it... for now...
Some context:
So no news is good news for now...
Charts: Bloomberg