FXStreet (Mumbai) – Risk-off sentiment from the last US session intensified in Asia as the Asian equities tracked the negative close on the Wall Street overnight, while the return of the oil rout to markets weighed heavily on the region’s indices.

Sentiment sours amid oil sell-off

The Japanese benchmark index, the Nikkei 225 plunges -3.30% to 17,166 points as risk-off trades continue to dominate after oil prices slumped almost 7% overnight and squashed hopes of a rebound in the black gold. Auto and mining stocks suffered heavily, and dragged the index lower. Further a stronger yen also continue to weigh on the exports stocks, with USD/JPY down -0.30% at 119.60. Also, the BOJ minutes released earlier today showed no plans for negative interest rates at this point, which also added to the downside in the index.

The Australian markets also nose-dives, with the ASX 200 index losing -2% to trade at 4,893. The heavily weighted banking stocks led the decline in the local equities, with the National Australia Bank (NAB) sliding more than 5% after settling the terms of its divestment of UK-subsidiary Clydesdale and Yorkshire Banking Group. Markets were also disappointed by the weak trade figures, which revealed mineral exports fell sharply in Dec.

While the Chinese equities also joined the global sell-off, despite another round of liquidity injections by the PBOC today. The benchmark Shanghai Composite index tanks -1.56% at 2,700. Shenzhen’s CSI 300 index drops -1.47%, while China A50 index slips -1.73%.

Risk-off sentiment from the last US session intensified in Asia as the Asian equities tracked the negative close on the Wall Street overnight, while the return of the oil rout to markets weighed heavily on the region’s indices.

(Market News Provided by FXstreet)

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FXStreet (Bali) – China Caixin January services PMI came at 52.4 vs 50.2 last, which reflects a 6 month high after a 17-month low last December. Meanwhile, the composite reading stood at 50.1 vs 49.4 last.

Commenting on the China General Services PMI™ data, Dr. He Fan, Chief Economist at Caixin Insight Group said: “Overall, the fast development of the services sector has to a large extent offset the impact of weakening manufacturing, indicating a better economic structure. The government should continue to deepen reform, relax administrative controls and reduce restrictions on market entry for service providers. This will release the potential of the services sector and help improve the economic structure.”

China Caixin January services PMI came at 52.4 vs 50.2 last, which reflects a 6 month high after a 17-month low last December. Meanwhile, the composite reading stood at 50.1 vs 49.4 last.

(Market News Provided by FXstreet)

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FXStreet (Guatemala) – Sean Callow, analyst at Westpac noted conditions surrounding EUR/AUD in a cross trade.

Key Quotes:

“EUR/AUD remains above the early Dec lows as AUD retains an increased risk premium linked to China’s growth outlook, while investors remain wary about dovish ECB rhetoric, given the disappointment over the Dec 2015 easing steps.”

“Market fears over China 1.54 are hardly likely to disappear in coming weeks, limiting AUD recovery from the January selloff. But with China making renewed efforts to calm local markets, we don’t expect a repeat of the Jan risk aversion in the weeks ahead. A steady RBA also helps AUD”

“Moreover, ECB president Draghi should be able to deliver sufficient easing in March to produce fresh EUR selling. This should see EUR/AUD back to 1.47-1.49 in March.”

Sean Callow, analyst at Westpac noted conditions surrounding EUR/AUD in a cross trade.

(Market News Provided by FXstreet)

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FXStreet (Guatemala) – AUD/NZD is currently trading at 1.0739 with a high of 1.0810 and a low of 1.0721.AUD/NZD has sold off with the Aussie losing traction due to not just the RBA statement and easing bias for 2016, but today’s trade balance that came…

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FXStreet (Bali) – PBOC to inject 100bn yuan through OMOs today, split into CNY 40 bln via 14-day reverse repos and CNY 60 bln via 28-day reverse repos. PBOC to inject 100bn yuan through OMOs today, split into CNY 40 bln via 14-day reverse repos and CNY…

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FXStreet (Guatemala) – AUD/USD is meeting supply on the back of the Australian December trade balance that came much worse-than-expected at-3535m vs -2450m expected and -2906m last.The data offered the exports at -5% vs 1% last, while imports stood at …

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