Chinese yuan, PBOC, oil and currencies

SINGAPORE — Stocks in Japan were set to trade lower at the open, as investors watch movements in the Chinese yuan.

Futures pointed to a lower open for stocks in Japan. The Nikkei futures contract in Chicago was at 23,600 while its counterpart in Osaka was at 23,560. That compared against the Nikkei 225’s last close at 23,619.69.

Meanwhile, shares in Australia were lower in early trade, with the S&P/ASX 200 down about 0.1%.

Chinese yuan watch

Movements in the Chinese yuan are set to be watched by investors on Monday, after the People’s Bank of China announced a rule change that made it cheaper to short the yuan.

The central bank announced Saturday that financial institutions now no longer need to set aside cash when conducting some foreign exchange forwards trading, with effect from Monday. Previously, financial institutions had to set aside 20% of the previous month’s yuan forwards settlement amount as foreign exchange risk reserves, according to Reuters.

The offshore yuan last traded more than 0.6% weaker against the greenback, at 6.7323 per dollar, after strengthening for the last few months.

National Australia Bank’s Tapas Strickland said the moves in the yuan were likely driven by the rule change “which makes it less expensive to short the (Chinese yuan) and signals less (concern) about currency weakness.”


The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.091 following a recent slide from levels above 93.3.

The Japanese yen traded at 105.62 per dollar after strengthening from levels above 105.9 against the greenback last week. The Australian dollar changed hands at $0.7227 after rising from about $0.71 last week.

Source link




Bentley Builds a Brand-New 1929 Blower Bentley—Wait, What?

Which of the two Bentley 4 1/2-Liter Blower models above is an original from 1929—and which one is the in-house re-creation that just...

Elizabeth Warren rips stock buybacks: ‘Nothing but paper manipulation’

Sen. Elizabeth Warren on Tuesday lambasted share buybacks as market manipulation made to inflate executive pay, calling them a poor use of excess...

Ex-VW CEO faces organized commercial fraud charges in Germany

FRANKFURT — Former Volkswagen Chief Executive Martin Winterkorn will face charges of conspiracy to commit organized commercial fraud with a high likelihood of...

South African student pinpoints her dream job in TCM

submitted by /u/kongweeneverdie Source link

Here’s how we can get the economy back up and running

In March, while there was still so much uncertainty about how our country would respond to the coronavirus, cities and states all over...