Severe unrest facing the Chinese yuan not seen in 15 years.
the ıts currency, the yuan, witnessed significant declines,
as the Hong Kong index fell by 6.4% to its lowest level in more than 13 years in trading on Monday,
prompting investors to abandon Chinese assets,
and this caused the Chinese CSI 300 index to decline by nearly three percent.
Which China has not experienced since the end of the global crisis in 2008
Here are the details from the Evest platform
topıcs
A very busy week of events affecting the movements of the markets
Federal meeting and the most important influences on the decision this week.
Communist Party Congress
The Communist Party Congress had a major impact on the matter,
as there was not enough economic concentration, as Andrew McCaffrey,
chief global investment officer at Fidelity International Asset Management, said,
who said that there was a case of surrender by international investors for fear of exposure.
This was a comment on the course of indirect matters with hope towards the State of China,
which witnessed significant declines in many fields.
The shares of technology companies coordinated by Holding Ltd. and Ali Baba fell by 11%,
which affected the Hang Seng Tech index, which also declined by 9.7%.
Chinese developers registered in Hong Kong fell by almost 10.8%.
The Iwan was greatly affected by these events, as it reached its lowest level in 15 years,
as it recorded approximately $ 7.30 in Monday’s trading.
The spread of the Corona virus has led to several areas, including tourism and investment,
whose consequences have been reaped by China so far
On Monday, China witnessed the largest outflow in nearly nine years,
as foreign investors netted about $2.47 billion in inland
Chinese stocks via Stock Connect. By 3.9% in the quarter from July to September.
But despite this, China is still in great danger due to the occurrence of these successive crises.
artıcle name Severe unrest facing Chinese yuan
A very busy week of events affecting the movements of the markets
Amid more US data
The US Federal Reserve decided to slow down its economic
tightening policy for fear of weak growth and stagnation crises.
The core personal consumption expenditures index saw
a noticeable rise in the last statement for the month of September,
and growth rose in the third quarter of this year.
The European economy is also witnessing a noticeable decline,
while the European Central Bank’s decisions have been responded to quickly and remarkably by the market,
which has restored hope for the decision-makers. As for the Bank of Japan,
it did not increase the interest rate and remained committed to its doctrine.
And in a state of weakness that began to appear on the US dollar during the last week of trading,
we are waiting for the decisions of the Federal Reserve meeting
that will raise the interest rate from 75 to 50 basis points,
while the voice of the fifty is getting louder, as the economy and
growth are in a state that cannot bear the pressure from The Fed accepted
, and the US ten-year treasury bond yields were also affected against their highest levels in October,
reaching 4.33%, but the US Federal Reserve cannot return from raising interest rates,
especially after the recent inflation data. So growth is not affected.
The US dollar index
witnessed a noticeable decline in the last trading week, when it reached 110,751
The euro also began to recover during that period, causing it to reach 1.0093 before the European Central Bank data,
and it also fell to 0.9956, reaching its lowest levels.
The interest rate was raised by the European Central and
it changed the conditions for obtaining loans in an effort to curb inflation
and reduce the volume Balance Sheet.
The European Central Bank is following the same path as the dollar,
as it seeks to reduce inflation to reach this 2%,
and as a result it has raised interest rates by seventy-five points for the second time in a row,
bringing the interest rate to nearly fifteen percent.
The sterling pound continued to rise this week,
reaching the level of 1.1645 against the US dollar, after opening the week at the level of 1.1332,
but so far the sterling has fallen by fourteen percent from the beginning of this year.
Sunak took office at this time,
one of the things that sparked controversy and affected the sterling significantly during the past week,
and the market response was positive towards this change,
as the pound recovered and bonds rose significantly in light of expectations
that the new prime minister will follow a more traditional approach to restore credibility
in Facing the economic challenges looming on the horizon and threatening the UK economy,
but the challenges that the British economy is currently going through are the biggest influence on the scene,
no matter how impressive the current progress.
artıcle name Severe unrest facing Chinese yuan
Federal meeting and the most important influences on the decision this week.
In light of the US market data, which witnessed some fluctuations recently after the Fed’s tightened policies,
the US bond market witnessed significant negativity during the recent period,
which may force the Federal Reserve to reduce the interest rate increase at its meeting on Monday,
according to economists’ expectations, as US bond yields have declined For 10 years, by about 4%,
affected by interest rate decisions.
Investors also expect to stop these declines if the Fed begins to reduce interest rate increases.
Fed officials have begun to tend to this step, which is to reduce interest rate increases,
as is the case in Europe, as well as the Canadian Bank, although so far it is just an idea only,
but it is an inevitable option, as it is expected that the Fed will reduce or slow down the pace Raise rates
by the end of the year It is possible that neither Fed Chairman Jerome Powell nor the October jobs report
will signal these expectations, which will likely count on whether inflation is showing signs of a steady
decline from its highest levels in four decades while there is still a deep division In the views of investors
who were divided between two teams between supporters and opponents of the Federal Reserve’s decision,
which is about to be issued, taking into account the continuation of the future contracts,
the chance of continuing to increase the interest rate by another seventy-five points.
In an important statement,
Liberia, the facilitator, global head of price strategy for DTD Securities,
said that the most important thing was Powell’s indication of his decision to tighten.
While Powell has to say that the ultimate risks are to the upside,
but the Fed’s tapering message is seen by the market as optimism as the recent recovery
in the bond market has seen sharp declines this year as
it has not happened in about 16 years during the US financial crisis.
The Institute of Supply Management’s index of factory activity will be greatly affected by the Fed’s decision,
as it is expected to decline to the 50 level during the month of October,
and the services measure is also expected to decline to 55.5 and at the end of the week the jobs index,
which is expected to provide hundreds of thousands of new jobs during the month.
With the expected decline in wages of up to 4.7%,
we are witnessing the next two weeks full of critical decisions that
will be decided by the Fed’s meeting requirements and employment data.
artıcle name Severe unrest facing Chinese yuan