Subscribe to RSS

Market Overview:  Dollar weakens with Black Monday market selloff

US stocks suffered the biggest drop in four years on Monday as investors sold off equities on concerns slowing economy of China will drag down global economic growth. The dollar weakened as market participants revised further downward expectations of interest rate hike in September given the dimmer outlook for world economy and selloff in US markets. The ICE US Dollar index, a measure of the dollar’s strength against a basket of six currencies, closed down 1.7%. The S&P 500 Index opened down as much as 5.3%, and closed with a decline of 3.9% to 1,893.21, the lowest level since October 2014. Nearly all 500 members of the index closed with a loss. Trading was heavy as nearly 14 billion shares changed hands on Monday, the largest volume since August 10, 2011. The course of US stock market will largely depend on incoming US economic data and further performance of China’s economy. Analysts now estimate second-quarter earnings will be 1.3% higher, sharply above the 3% decline expected at the start of last month. Stock futures are rising today, pointing to possibility of market recovery. Today at 14:00 CET June Case-Shiller price index will be released. The tentative outlook is positive. At 14:00 CET July new home sales, Conference Board’s consumer confidence index and Richmond Fed’s manufacturing index for August will be published. The tentative outlook is positive.

European stocks plunged on Monday in a global selloff prompted by worries about China’s slowing economy. The euro gained about 1.7% against the dollar. Stoxx Europe 600 sank 5.3%, suffering the biggest one-day percentage loss since December 2008. Germany’s DAX 30 fell 4.7% to end below 10,000 at 9,648.43 for the first time since January. UBS cut its 2015 and 2016 growth forecasts for euro-zone gross domestic product on Monday after growth in the first two quarters of this year was slower than it had anticipated. UBS now expects 2015 growth of 1.4% compared with an earlier projection of 1.6%, and forecasts GDP expansion in 2016 of 1.9% versus its previous outlook of 2%. European stock futures are rising today, reflecting market expectations of a rebound. Today Goldman Sachs downgraded their outlook on equities due to the impact of the drop in China by reducing their 3-month recommended asset allocation in equities to ‘neutral’ from ‘overweight’. Ifo institute’s report today showed German business confidence unexpectedly rebounded as business climate index climbed to 108.3 in August from 108 in July.

Nikkei fell 4% today in a choppy session as investors sold off shares with exposure to China. Today head of the ruling Liberal Democratic Party’s decision-making General Council and a close aide of Premier Shinzo Abe said Japan’s government must make a supplementary budget for fiscal spending to support the economy, but finance minister Taro Aso said the government had no immediate plans to devise a new fiscal package.

Chinese stocks plunged today as Shanghai Composite Index tumbled 7.6 % despite the injection of $23.4 billion into the financial system by the central bank.

Oil is edging higher today after October Brent crude dropped 6.1% on Monday to $42.69 a barrel, dipping below $43 for the first time since March 2009.

Gold is extending losses today as dollar is rebounding and Asian equities recovered from three year lows after yesterday’s selloff. Gold futures lost 0.5% on Monday.

Copper is edging higher today after falling 1.9% to the lowest level in more than six years on Monday.

More Details

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

$300 Free Win Trading Credit on Monday – easyMarkets

$300 Free Win Trading Credit on Monday – easyMarkets(0)

Enter now and you may win $300 easyMarkets free trading credit bonus on Monday. Answer the weekend quiz and fill the form with your correct and accurate contact details. Link:  50% Deposit Bonus Up to $2000 Link:  $300 Free win Trading Credit Bonus Link:  Up to $2500 Earn just for Sharing Available to: All new

$50 Free Binary Bonus No questions asked – Tradeplus

$50 Free Binary Bonus No questions asked – Tradeplus(0)

Get $50 Free Open a free Binary live trading account, deposit and get $50 FREE Bonus – no questions asked! Make your first deposit and you’ll get an extra $50 – no strings attached Link:  $50 Free Bonus No questions asked Available to: All new Customers Ending Date: 31 December 2017 Bonus offer: Get $50

Get 20% Bonus Make $100 Deposit or More – FirewoodFX

Get 20% Bonus Make $100 Deposit or More – FirewoodFX(0)

20% Forex Bonus Make $100 Deposit or More. Bonus can be used as additional margin and equity If you deposit $500, you can hold a losing position up to $600 Link: 20% Bonus Make $100 Deposit or More Available to: All new and existing Bonus Ending Date: 31 December 2017 Bonus offer: 20% Bonus Make

150% Bonus for a First Time to Binary Trading – NordFX

150% Bonus for a First Time to Binary Trading – NordFX(0)

Up to 150% Bonus for a First Time to binary options Account. For a perfect start, we offer you a 150% bonus for a first-time $5,000 deposit. Link:  Up to 150% Bonus for a First Time Link:  100% Withdrawable Deposit Bonus Link:  55% Deposit Bonus Promotion Available to: All new traders Ending Date: 31 December

100% Welcome Bonus Plus Daily Free Signals – Trade12

100% Welcome Bonus Plus Daily Free Signals – Trade12(0)

Get 100% Welcome Deposit Bonus and 7-day risk free trade, Boost your trading with a free 100% Welcome Deposit Bonus to your Live Trading Account. Link:   Get 100% Welcome Bonus Link:  50% Exclusive Deposit Bonus Link:  Free Daily Forex Trading Signals Available to: All new clients Ending Date: 31 December 2017 Bonus Offer: Get

25 Euro Forex No Deposit Welcome Bonus – direktbroker-FX

25 Euro Forex No Deposit Welcome Bonus – direktbroker-FX(0)

25 Euro Forex No Deposit Welcome Bonus to all EU and the UK  live Trading Account Holder. Open a real account direct instead of an demo account first and you will get a 25,- Euro Free. Link:  25 Euro Free Welcome Bonus Available to: All new account Ending Date: 31 December 2017 Bonus offer: 25

Up to $250 Cash in Your Expert Advisor – ThinkMarkets

Up to $250 Cash in Your Expert Advisor – ThinkMarkets(0)

Up to $250 Cash in Your Expert Advisor. Make the Move to Think Trader and Cash in Your Expert Advisor for Up to $250* Link:  Up to $250 in Your Expert Advisor Available to: All new account Ending Date: 31 December 2017 Bonus offer: Up to $250 Cash in Your Expert Advisor Bonus to all new

$30 Forex No Deposit Bonus Welcome Promo – XM

$30 Forex No Deposit Bonus Welcome Promo – XM(0)

$30 Forex  No Deposit Bonus Welcome Promo Bonus and 15% Welcome Deposit Bonus, Welcome Bonus brings Real Account clients the best rewards available. Entering the markets and trading with XM enables you to earn from your trades and build your own bonus up to a maximum of $1,000. Link:  $30 Forex No Deposit Bonus Link: 

50% Re-Deposit & 100% Tradable Bonus – Xtream Forex

50% Re-Deposit & 100% Tradable Bonus – Xtream Forex(0)

50% Re-Deposit Tradable Forex Bonus for all of its traders. Every existing and new trader is eligible for this Re-Deposit Tradable Bonus for depositing into their trading account. Link:  100% Tradable Deposit Bonus Link:  35% Deposit Cash Bonus Link:  50% Re-Deposit Forex Bonus 50% Re-Deposit Forex Bonus XtreamForex is glad to announce 50% re-deposit forex

Free $50 No Deposit Bonus and Start Trading – Trade360

Free $50 No Deposit Bonus and Start Trading – Trade360(0)

$50 Forex No Deposit Bonus is available only once for each client. Every verified user can use $50 No Deposit Bonus and get one or several investment accounts. Link:  $50 Forex No Deposit Required Bonus Link:  $280 CashBack Rewards Program Available to: All new account Ending Date: 31 December 2017 Bonus offer: $50 New No

read more

Forex Featured Broker

Contacts and information

ForexDepositNews.com Forex Deposit Bonus, Forex No Deposit Bonus, Forex Live Contest, Forex Demo Contest, Free Forex Bonus Forex Brokers Review and Other All Forex promotions.

ForexDepositNews.com

Social networks

Most popular categories