China: Suspended use of 'circuit breakers' - Investec

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    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.”
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