FXStreet (Delhi) – Research Team at Investec, suggests that the big news overnight was talk that China moved to support its sinking stock market as state-controlled funds bought equities (rumoured to be the largest intervention since September after the August stock rout).
Key Quotes
“China’s CSI 300 index had tumbled 7% on Monday causing trade to stop for the day on the newly implemented ‘circuit breaker’. In addition to stock buying intervention, the securities regulator signalled the current selling ban on major investors (the imminent removal of which on the Jan 8 deadline had likely caused Monday’s sell off) will remain beyond this week’s expiration date, as reported on major news wires. Either way, the heightened volatility and risk averse nature of these moves will likely continue to benefit the US Dollar.”
(Market News Provided by FXstreet)