FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet noted the market turmoil overnight.
Key Quotes:
“The market was in full panic-mode this Monday, following an 8.5% decline in the Shanghai Composite during the Asian session. Stocks sunk, dragging the dollar alongside with them against most of its major rivals. There were no macroeconomic releases, and even if there were, investors wouldn’t have noticed.
European indexes opened sharply lower, and the main local benchmark closed the day with losses of above 4%. In the US, the DJIA traded 1,000 points lower from its Friday’s close in the first minutes following the opening, but it finally managed to erase most of its intraday losses, closing however, in the red.
The USD came under pressure on speculation the plunge in global stock markets has reduced dramatically chances of a rate hike in the US this September, but most of what investors witnessed this Monday was panic selling, and there’s not much behind it, except that selling fuels even more selling.”
(Market News Provided by FXstreet)