CMS DAILY MARKET REPORT 06 AUGUST 2019

 

ASIA STOCKS CONTINUE TO SLIDE RECORD LOWER LEVEL
 Asian shares following the global sentiments continue to slide down with no immediate respite . Japan’s Nikkei is again lower by 2%  to the lowest since early January .

CHINA CURRENCY SPOOK THE INVESTORS TRUMP WARNS FED OVER CURRENCY MANIPULATION
The policy makers has intervene today  and hold the slide in China tumbling yuan .The stocks  tumbled and bonds were trading at high levels after  US again  labelled Beijing a currency manipulator. The Yuan has slumped 2.3% in the past three days braking below symbolic 7 per dollar level.

OIL PRICES RECOVERS ABOVE $55
Oil prices  gains support after the PBOC stem in and soothes the yuan slid which calms the investors freaky sentiments.

EUROPEAN STOCKS EXTEND THE LOSSES ON MONDAY
European shares  tumbled in the previous day session  as  the  escalation of U.S.-China trade tensions continues to fear  investors worldwide. The pan-European Stoxx 600  closed down by  2.3%.

BRITAIN HAS NOTHING MORE TO OFFER : EU OFFICIALS ON BREXIT
The new government in the UK has proposed few changes in the  deal such as scrapping the Irish border backstop for which  The EU  already said there is no basis for any further Brexit talks . The EU negotiators informed EU  officials  changes suggested by the new UK government were unacceptable.

US EQUITY CLOSED AT ITS WORST, DROPPED LIKE HOUSE OF CARDS
U.S. stocks closed on negative territory after Chinese government devalue the currency amid to control blow of tariff war. The Nasdaq -278.03 points or -3.4% at 7726, the S&P fell  about 3% to 2,844 and the Dow, which opened 400 points lower, was closed down 767.27 points, or -2.9%, at 25,717.74.

US TREASURY SECRETARY MNUCHIN REBUKE CHINA A “CURRENCY MANIPULATOR
The Chinese government devalued the currency against dollar on Monday trading session as weaker currency could offset the storm of tariffs war. As a result, weaker currency helps Chinese goods costs cheaper in US economy and US goods will be available costly in China.

 

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