China’s currency is expected to fall much more
Many experts believe that China’s currency is going to ultimately drop beyond an important psychological level. If that happens it could easily ignite an even further drop and, will probably, bring a new set of criticism from the Trump government. On Wednesday the Treasury Department refrained from calling China a ‘currency manipulator’ in its semiannual currency statement, though it held it on an attention list with some other nations. China was explicitly called out for its ‘lack of currency transparency and recent weakness in the currency.” A weaker yuan helps insulate China against some of the impacts of trade tensions because it makes exports cheaper.
GBPUSD dropping after a weak EU summit
UK Prime minister may is be playing for time via the expansion period while her critics are arising and some Tories force team up with labour in a Parliamentary vote.
As for the European Union continues ‘hopeful’ recognizing that May is in a dilemma.
and still, there is no Brexit agreement.
All the above has weighed on the GBP. The four-hour chart shows a portion of the EMA’s went above price. This probably will develop an important area to watch to re-enter the bear mode. GBP is not looking good for the now. The EU being ‘hopeful’ is not working anymore and can give the GBP a sustained pull to the upside.
Gold going higher while stocks going down
U.S. gold futures moved up 0.1% at $1,230.8 an ounce while Spot gold was up 0.2% at $1,227.40 per ounce and about 0.7% higher for the week.
On Friday Gold prices nudged higher while Asian stocks declined on repeated political and economic matters including China’s weak extension, with the metal on track for a 3 straight weekly gain.
China’s economy rose 6.5% in the third quarter from and this is the slowest pace since the global economic crisis and dropped expectations as a years-long battle to tackle debt risks and the trade war with the United States began to show. Ronan Manly, a precious metals analyst said
“With Chinese equity markets continuing to drift lower, and lingering geopolitical risks such as Fed interest rate hikes, Italian budget concerns, and the U.S.-China trade war, stock markets are still shaky and in no way have stabilized,”
Dow falls more than 300 points
Yesterday’s drops create even more damages to market for this month. The Nasdaq dropped nearly 7% in October while S&P 500 and Dow have fallen more than 4% respectively. The NTech, the biggest S&P 500 sector by market cap, is with the stragglers this month, falling about 7.0%.
The Dow Jones Industrial Average fell 327.20 points to 25,379.40, driven by drops in Caterpillar. The Nasdaq Composite drew back 2.0% to close at 7,485.14. The S&P 500 fell 1.4% to 2,768.77 as the consumer discretionary and tech sectors lagged.