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Ruble, Lira, & Ringgit Tumble On USD, Yuan Gains As PBOC States "China Correction Nearly Over"
After surging stronger for 2 weeks, EM FX is starting to lose ground in early Asia trading following Fischer's comments Friday. The biggest losers so far are Turkish Lira, Russian Ruble, and Malaysian Ringgit which has dropped over 1% in early Asia trading - its biggest drop in a month. China expanded its regulatory crackdown to 11 more firms for "illegal stock operations" - i.e. selling - bringing the total to 41 firms. The PBOC Deputy Governor tells anyone who will listen that "China's market correction is nearly over," following the IMF annual meetings - "China's economy is basically stable" - and Chinese stocks are modestly higher in the pre-open (with Dow futures -40pts). Yuan at 2mo highs after strengthening 7 days in a row.
After a couple of weeks of serious strength, EM FX is leaking back lower against the USD...
With Lira, Ruble, and Ringgit the biggest losers for now...
- *RINGGIT FALLS 1.1% TO 4.1795 PER DOLLAR
- The dollar reasserted itself, snapping an eight-day rally in Australia’s currency after Federal Reserve Vice Chairman Stanley Fischer joined the chorus touting a potential U.S. interest-rate hike by year end. Australian stocks fell with U.S. index futures following the best week for global equities since 2011.
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Exceited by comments on China "managing:" to avoid a hard landing dureing discussions at The IMF's annual meeting
The Chinese regulatory crackdown begins again...
CHINA CSRC HOLDS HEARING FOR ILLEGAL STOCK OPERATIONS: XINHUA
China Securities Regulatory Commission (CSRC) has held a two-day hearing for 11 illegal cases of reducing share holding.
It was the first time that the CSRC dealt with cases involving such amount of illegal share-holding reductions in one hearing.
The regulator asked big shareholders of public companies not to sell shares in an effort to keep the market stable in the past months.
Altogether 41 such cases had been investigated, and the 11 cases at the hearing on Friday and Saturday were suspected of similar operations, the commission said.
All the persons concerned admitted the facts at the hearing, but requested less punishment, claiming their operations tended to lower financial cost and made no impacts to the stock market, while they had carried out timely remedial measures.
Margin debt rises again...
- *SHANGHAI MARGIN DEBT BALANCE REBOUNDS FOR SECOND DAY
And stocks are modestly bid in the pre-open...
- *FTSE CHINA A50 OCTOBER FUTURES RISE 1% IN SINGAPORE
- PBoC Dep Gov: China’s Market Correction Nearly Over -- RTRS
- *NDRC OFFICIAL LIU HE SAYS CHINA ECONOMY BASICALLY STABLE
And with the Yuan at 2-month highs, PBOC fixes the Yuan stronger for the 7th day in a row....
- *CHINA SETS YUAN REFERENCE RATE AT 6.3406 AGAINST U.S. DOLLAR
A top Chinese central banker said a “persistent” weakening of the yuan would be inconsistent with the fundamentals of the world’s second-biggest economy, and the country is committed to making its currency regime more flexible and market based.
“As wide-ranging structural reforms are being carried out, the Chinese economy will become more balanced and sustainable,” People’s Bank of China Deputy Governor Yi Gang said Friday in a statement at the IMF annual meetings in Lima. Reforms to make the yuan more market-determined will make its exchange rate more flexible, “floating around the equilibrium level in both directions.”
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Charts: Bloomberg
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The world economy is now a disaster area, with a debt load that is in the quadrillions of dollars (two) if you include the derivatives manufactured by Wall Street.
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Cha Ching Gang Bang !!!
Fucking chump change. Try this instead, loser.
http://www.businessinsider.com/south-koreans-tech-watching-people-eat-online-mukbang-2015-9
"Nearly over" like 2009's green shoots? "Nearly a laugh but it's really a cry". (Pink Floyd, Animals)
pink floyd animals...like having erotic, orgasmic sex with my eardrums......I think the powers that wish they were, killed Lennon, but I think they left pink floyd alone because their truth was so deep that most wouldnt understand anyway....
More rate hike propaganda. NIRP and helicopter money are on the way.
China's "market" correction may or may not be over...but it's demographic driven economic decline is just beginning and the story of China changing from an export driven economy to consumer driven (as their core population shrinks) is sadly laughable.
http://seekingalpha.com/article/3526426-the-story-of-china-is-the-story-of-japan-just-10x-bigger
It should be obvious to anyone paying attention that those running this shit show have no idea what they're doing.
Yen Cross. Help me out. What does this mean for Gold in USD for 4Q ???
If any country wants to take down the US the only way to do it is economically.
Take all the key technologies and circumvent the trust of the currency.
Bankrupting the Soviet Union worked.
reform = bohica
Here in Thailand we await the property bubble pop and boy will it be huge!
PBOC has admitted that their "market" no longer functions. Anyone who buys into China now gets what they deserve.
The market in China has made a healthy correction. If you llook at the Shanghai composite Index, it is right where it should be. There was no crash, no debacle, no fun for the China bashers.
http://finance.yahoo.com/echarts?s=000001.SS+Interactive#{%22range%22:%22max%22,%22allowChartStacking%22:true}
They took the air out of the bubble. In 2007-2008 they had a much bigger correction, and returned to grow after that. China doesn't give a shit what outsiders think.
I have 1/5 of my savings in yuan (rmb). I think usd/rmb will go to parity when China has bolstered their, internal, consumer economy.
HelI, I think the exchange rate will revert to a very strong rmb when China has no use for us.
Every commie statement precedes a devaluation.