Asian stock markets drifted Friday as China’s currency stabilized for a second day, easing uncertainty about its direction after an unexpected devaluation earlier in the week.
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The US stock market finished with a slight loss as China’s central bank calmed concerns that the country’s currency would continue its slide. The move jolted markets in Europe, home to big companies that rely on China’s growing middle class to buy their products. Major indices in the US wobbled between slight gains and losses. (GBT) is a clinical stage biopharmaceutical company dedicated to discovering, developing and commercializing novel, small molecule therapeutics to treat grievous blood-based disorders with significant unmet need.
“Global asset price movements have been more contained today after a slightly stronger (yuan) fixing overnight helped dampen volatility”, Barclays’ Hamish Pepper said in a report. The S&P 500 was down 3.53 points, or 0.17 per cent, at 2,082.52 and the Nasdaq composite was down 0.43 points, or 0.01 per cent, at 5,043.96.
Gold had enjoyed a bounce from haven demand as China’s move to devalue the yuan, spurred turmoil.
The global Monetary Fund, which has also called for China to let market forces prevail, “welcomed” the news but said that it would have “no direct implications for the criteria used in determining” whether it will be included in the in the IMF’s basket of reserve currencies down the line, Bloomberg’s Edna Curran reports.
PHEW: “I think the central bankers have given people a reason to believe they’re not that anxious”, said Jason Pride, director of investment strategy at Glenmede, a money management firm.
German automakers such as BMW, Daimler, and Volkswagen were once again hammered for their exposure to China.
Bond prices fell. The yield on the 10-year US Treasury rose to 2.15 percent from 2.14 percent Tuesday, while the 30-year advanced to 2.84 percent from 2.81 percent. Japan’s Nikkei 225 rose 1 percent, and South Korea’s Kospi gained 0.4 percent.
Large banks declined, including Citigroup (-1.3 percent) and Dow member JPMorgan Chase and Bank of American (both -1.5 percent).
Insurer Allstate fell 10.2 per cent after a rise in payments for auto accidents dented second-quarter earnings, while handbag and accessories retailer Coach rose 3.2 per cent after reporting better-than-expected results. The Chinese e-commerce powerhouse reported first-quarter net income more than doubled on strong growth across its online and mobile platforms.
“An improvement in retail sales and a steady unemployment claims figure is the expected data-landscape, and could portend an afternoon decline for the rate hike adverse Dow Jones”, said Spreadex’s financial analyst Connor Campbell.
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Department store chain Macy’s dropped 3.5 percent as it cut its forecast for 2015 comparable sales to flat compared with the previous projection for a gain of two percent.
