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

Free $200 Earn with Binary No Deposit Bonus – Ayrex

Free $200 Earn with Binary No Deposit Bonus – Ayrex(0)

Earn $200 Free with Binary Options No Deposit Bonus to all new activated trading account. Ayrex presents its very first Binary Options No Deposit Bonus for new traders. Sign up to get FREE $30 and turn them into a fully withdrawable $200! Link: $200 Earn with No Deposit Bonus Link:  $100 Free Win in Just One

$30 Free No Deposit Welcome Bonus Campaign – Tickmill

$30 Free No Deposit Welcome Bonus Campaign – Tickmill(0)

$30 Free No Deposit Welcome Bonus Campaign to All new traders. $30 Free Welcome Account is available to all new clients who expressed a wish for it during the registration process. Link:  $30 Free Welcome Bonus Offer Available to: All new traders Ending Date: 31 December 2017 Bonus Offer: $30 Free No Deposit Welcome Bonus

Get $2017 No Deposit Hot Bonus Promotion – FreshForex

Get $2017 No Deposit Hot Bonus Promotion – FreshForex(0)

$2017 No Deposit Hot Forex Bonus Offer to all new verified customers. The $2017 Hot No Deposit Forex Bonus offers you a unique opportunity to test trading strategies of FreshForex Link:  $2017 No Deposit Hot Bonus offers Available to: All New Traders. Ending Date: 30 April 2017 Bonus Offer: $2017 No Deposit Exclusive Hot Bonus

100% Real Money Cash Back Bonus Promotion – UFX

100% Real Money Cash Back Bonus Promotion – UFX(0)

100% Real Money CashBack Promotion 2018 to all new and existing clients. Join and gain exclusive access to the ONLY online trading 100% Cashback rewards bonus program Link:  100% Real Money CashBack Promotion Link:  $50 Forex No Deposit Bonus Promotion Available to: All new trading account Ending Date: 31 December 2017 Bonus offer: 100% Real

$15 Cashback Rebate Bonus per Lot Traded – FBS

$15 Cashback Rebate Bonus per Lot Traded – FBS(0)

$15 Cash back Rebate Forex Bonus per Lot Traded to All new traders. $15 Cashback Rebate Forex Bonus service is unavailable for the clients, who registered their accounts via their partners. Link:  $15 Cashback Rebate per Lot Traded Link:  100% Forex Deposit Bonus Promotion Link:  100% Forex Deposit Bonus Promotion Available to: All new traders

100% Easy Welcome Deposit Bonus Promo – Trade12

100% Easy Welcome Deposit Bonus Promo – Trade12(0)

Free Daily Forex Trading Signals via SMS. EMAIL. SKYPE. WHATSAPP and 100% Easy Welcome Deposit Bonus Promo to your Live Trading Account, Free E-Books Link:  Free Daily Forex Trading Signals Link:  Get 100% Welcome Deposit Bonus Link:  Get Forex Free E-Books Available to: All new clients Ending Date: 31 December 2017 Bonus Offer: Get 100%

$50 Forex Free No Deposit Bonus Promo Action – FortFs

$50 Forex Free No Deposit Bonus Promo Action – FortFs(0)

$50 Forex Free No Deposit Bonus Promo Action to all eligible clients. Every client who passed the verification process in their trader’s room can get the $50 Forex Free No Deposit Bonus Promo Action Link: $50 Forex No Deposit Welcome Bonus Link: Up to 50% Bonus of Every Deposit Link: 15% Support Margin Bonus Promo

Get 25% Trading Credit Bonus up to $5000 – HYCM

Get 25% Trading Credit Bonus up to $5000 – HYCM(0)

25% Forex Trading Credit Bonus Promo available on your Deposits. Experience Some of HYCM New Features, Services and Offers Receive 25% Forex trading credit bonus Link:  25% Trading Bonus on your Deposits Ending Date:  31 December 2017 Available to:   New Clients only Bonus Offer: 25% Forex Trading Bonus Promo Available on your deposits to New Clients

100% Bonus to your first Deposit Up to $300 – AvaTrade

100% Bonus to your first Deposit Up to $300 – AvaTrade(0)

100% Bonus Limited Time Offer to your first deposit Up to $300. Start trading today and in honour of our Irish roots we’ll give you a St. Patricks Day special bonus of up to 100% Link:  100% Special Bonus to Your First Deposit Available to: All new account Ending Date: 31 December 2017 Bonus offer:

Forex Live Contest Total Prize Pool $15000 – FxGrow

Forex Live Contest Total Prize Pool $15000 – FxGrow(0)

Live Trading Forex Contest. The Live Forex trading forex contest that is offered for ECN PLUS and ECN VIP live account holders. Link:  Forex Live Trading Contest Available to: All new trading account Ending Date: 7 April 2017 Terms and Conditions of the Clash for Cash- Live Trading Contest By applying for Cash for Clash

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