Currencies

China capital curbs reflect buyer’s remorse over market reforms

Last year the reformist head of China’s central bank convinced his Communist party bosses to give market forces a bigger say in setting the renminbi’s daily “reference rate” against the US dollar. In return, Zhou Xiaochuan assured his more conservative party colleagues that the redback would finally secure coveted recognition as an official reserve currency […]

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Capital Markets

Mnuchin expected to be Trump’s Treasury secretary

Donald Trump has chosen Steven Mnuchin as his Treasury secretary, US media outlets reported on Tuesday, positioning the former Goldman Sachs banker to be the latest Wall Street veteran to receive a top administration post. Mr Mnuchin chairs both Dune Capital Management and Dune Entertainment Partners and has been a longtime business associate of Mr […]

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Banks

Financial system more vulnerable after Trump victory, says BoE

The US election outcome has “reinforced existing vulnerabilities” in the financial system, the Bank of England has warned, adding that the outlook for financial stability in the UK remains challenging. The BoE said on Wednesday that vulnerabilities that were already considered “elevated” have worsened since its last report on financial stability in July, in the […]

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Currencies

China stock market unfazed by falling renminbi

China’s renminbi slump has companies and individuals alike scrambling to move capital overseas, but it has not damped the enthusiasm of China’s equity investors. The Shanghai Composite, which tracks stocks on the mainland’s biggest exchange, has been gradually rising since May. That is the opposite of what happened in August 2015 after China’s surprise renminbi […]

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Financial

Hard-hit online lender CAN Capital makes executive changes

The biggest online lender to small businesses in the US has pulled down the shutters and put its top managers on a leave of absence, in the latest blow to an industry grappling with mounting fears over credit quality. Atlanta-based CAN Capital said on Tuesday that it had replaced a trio of senior executives, after […]

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Categorized | Currencies

Equities continue climb, ringgit slides ahead of policy meeting


Posted on November 23, 2016

Asian equities continue to rally on Wednesday after Wall Street notched up another set of record highs overnight, while the US dollar is trading flat.

The Dow Jones Industrial Average deserves a mention for closing above 19,000 points for the first time, while its peer US stock indices again closed at record highs. Monday was the first time since 1999 the Dow, S&P 500, Nasdaq Composite and small cap Russell 2000 simultaneously closed at record highs.

But the Australian dollar is the one of the big movers, up 0.3 per cent at $0.7425. The currency shrugged off data showing the value of construction work done during the September quarter fell at its fastest quarterly pace in 16 years, and instead rallied as a survey of Chinese business conditions showed continued improvement in November.

Japan’s benchmark Topix was up 0.3 per cent, as was the price-focused Nikkei 225. Australia’s S&P/ASX 200 gained 1 per cent, led by mining stocks, while Hong Kong’s Hang Seng was up 0.5 per cent. China’s Shanghai Composite added 0.2 per cent but the technology-focused Shenzhen Composite was flat.

Apart from the Australian dollar, Malaysia’s ringgit is the other big mover today, sitting 0.4 per cent weaker against the dollar at its lowest level since September 2015. This comes ahead of this afternoon’s policy meeting from the country’s central bank. The recent slide in the currency, which has prompted Bank Negara Malaysia to play down fears it might have to introduce capital controls, has dulled the prospect of the central bank cutting interest rates today.

The dollar index, a measure of the US currency against a basket of peers, was fractionally lower at 101, while the Japanese yen was fractionally stronger at ¥‎111.09 per dollar

After strong gains at the start of the week on renewed hopes Opec members will agree to a supply cut at a meeting later this month, oil prices have cooled. Gains were tempered in New York on Tuesday, and in Asia today Brent crude was up 0.1 per cent at $49.13 a barrel while West Texas Intermediate was flat at $48.02.