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11 Mar 2014
Flash: Weak market indicators in China - RBS
FXStreet (Bali) - As Greg Gibbs, FX Trading Strategist at RBS, notes, there are weaker financial market trends developing in China.
Key Quotes
"Chinese metals and equities prices have fallen significantly in recent trading, much more than in other countries. Its credit spreads have re-widened in the last week."
"China may have responded with a weaker currency and lower rates. Trends in major countries and some other emerging markets are improved or stable helping offset developments in China for global asset markets."
"Weak market indicators in China suggest its data prints this week may also show a weakening trend. This should see commodity currencies under-perform against the USD (US data improved), even though solid risk appetite should prevent a rout."
"USD/JPY may begin to grind higher with higher yields in the US and other majors. Asia currencies may be held back by a weaker CNY and JPY and trade links to China, but supported by potential trade support from major markets and in some cases lower commodity markets. This may continue to see INR trade well within Asia."
Key Quotes
"Chinese metals and equities prices have fallen significantly in recent trading, much more than in other countries. Its credit spreads have re-widened in the last week."
"China may have responded with a weaker currency and lower rates. Trends in major countries and some other emerging markets are improved or stable helping offset developments in China for global asset markets."
"Weak market indicators in China suggest its data prints this week may also show a weakening trend. This should see commodity currencies under-perform against the USD (US data improved), even though solid risk appetite should prevent a rout."
"USD/JPY may begin to grind higher with higher yields in the US and other majors. Asia currencies may be held back by a weaker CNY and JPY and trade links to China, but supported by potential trade support from major markets and in some cases lower commodity markets. This may continue to see INR trade well within Asia."