8 Jan 2016
China: Suspended use of 'circuit breakers' - Investec
FXStreet (Delhi) – Research Team at Investec, notes that the Chinese regulators suspended use of 'circuit breakers' that had seemed to become akin to waving a red rag to a bull.
Key Quotes
“After less than one week, and two 7% drops, the end of these loss-capping levels saw a calmer session last night, albeit due to reports of Chinese state owned companies supporting the market by buying stocks. This also saw the Chinese Yuan recover a little much to the disappointment of Panda bears, with the People's Bank of China ending an 8 day run of weaker Yuan fixes.
The relative calm saw S&P futures recover in the US after the cash index fell over 2% yesterday, capping the worst ever start to a year as Fed policy tightens and Chinese stock slides caused risk aversion.”
Key Quotes
“After less than one week, and two 7% drops, the end of these loss-capping levels saw a calmer session last night, albeit due to reports of Chinese state owned companies supporting the market by buying stocks. This also saw the Chinese Yuan recover a little much to the disappointment of Panda bears, with the People's Bank of China ending an 8 day run of weaker Yuan fixes.
The relative calm saw S&P futures recover in the US after the cash index fell over 2% yesterday, capping the worst ever start to a year as Fed policy tightens and Chinese stock slides caused risk aversion.”