Global equities capped their worst start to a year since 2000, with the Dow Jones Industrial Average sliding more than 250 points, as China unexpectedly weakening its currency fueled fresh concern over the strength of the world economy. Bonds gained.
The MSCI All-Country World Index ended the first three days of 2016 down by 3.3%, as US stocks fell to a three- month low and emerging-market shares dropped to their cheapest level since 2009. Brent crude plunged to its lowest point since 2004, while US oil spiked below US$34 a barrel as supplies at a hub rose to a record.
The dollar pared gains after minutesof the Federal Reserve's last meeting were released. Treasuries jumped, with yields on 10-year notes dropping seven basis points to 2.17%.
"This is risk aversion right now," Benjamin Dunn, president of Alpha Theory Advisors, which works with hedge funds overseeing about US$6 billion. "This is like a replay of the same things that moved the markets in August. We're perhaps getting confirmation that China is as bad as people think. We've lost the tailwinds from the Fed and investor enthusiasm and this adds to the mosaic of fear that's out there right now.
China's growing tolerance for a weaker yuan signaled the government is struggling in its efforts to shore up economic growth and rekindled concern last seen in August, when US stocks entered their first correction in four years amid anxiety the slowdown in China would hamper global growth. US crude's plunge toward US$34 a barrel heightened disinflation fears as investors assess the ability of central banks to meet policy goals. The World Bank cut its global growth forecasts for this year and next as markets closed.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
The MSCI All-Country World Index ended the first three days of 2016 down by 3.3%, as US stocks fell to a three- month low and emerging-market shares dropped to their cheapest level since 2009. Brent crude plunged to its lowest point since 2004, while US oil spiked below US$34 a barrel as supplies at a hub rose to a record.
The dollar pared gains after minutesof the Federal Reserve's last meeting were released. Treasuries jumped, with yields on 10-year notes dropping seven basis points to 2.17%.
"This is risk aversion right now," Benjamin Dunn, president of Alpha Theory Advisors, which works with hedge funds overseeing about US$6 billion. "This is like a replay of the same things that moved the markets in August. We're perhaps getting confirmation that China is as bad as people think. We've lost the tailwinds from the Fed and investor enthusiasm and this adds to the mosaic of fear that's out there right now.
China's growing tolerance for a weaker yuan signaled the government is struggling in its efforts to shore up economic growth and rekindled concern last seen in August, when US stocks entered their first correction in four years amid anxiety the slowdown in China would hamper global growth. US crude's plunge toward US$34 a barrel heightened disinflation fears as investors assess the ability of central banks to meet policy goals. The World Bank cut its global growth forecasts for this year and next as markets closed.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
0 comments:
Post a Comment