Chances that the Fed will raise interest rates this week are considered to be virtually nil, but markets will be watching for comments on its rate outlook for the rest of the year. “Once in effect, these enhancements will bring the Saudi equity market closer to Emerging Market accessibility standards”, it said.
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Chinese mainland shares were denied entry into the MSCI index yesterday, making it the third time the country’s domestic market were shunned by the index provider.
The stock exchange was dropped from the MSCI Emerging Markets Index when it imposed a floor on the market during the financial crisis in 2008, effectively trapping local and foreign investors for several months. Following the decision, Shanghai’s benchmark opened about 1 percent lower before reversing those losses to advance strongly while the Chinese central bank set its daily yuan rate 210 basis points lower at 6.6001 to the dollar, the weakest since January 2011.
Traders said the MSCI decision did not have an immediate impact on China’s forex market.
The iShares MSCI China A ETF gives investors exposure to the onshore market through New York-based BlackRock’s Renminbi Qualified Foreign Institutional Investor Quota.
DUBAI, June 15 (Reuters) – Saudi Arabia’s stock market led falls in the Gulf on Wednesday after MSCI decided not to consider the country for emerging market status, while Egypt fell sharply as blue chip Orascom Telecom Media continued sliding.
WALL STREET: Major U.S. benchmarks ended lower. Dow and S&P 500 futures both rose 0.3 percent.
It was also the index’s biggest single-day percentage gain since March 31, 2015 when it rose 4.5 percent.
ENERGY: Benchmark U.S. crude oil futures dropped 48 cents to $48.01 a barrel in electronic trading on the NY Mercantile Exchange.
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The Shanghai Composite has dropped 18 per cent in 2016, while Deutsche X-trackers Harvest CSI 300 China A-Shares ETF, the biggest USA exchange-traded fund investing in mainland shares, has retreated 17 per cent. Brent crude, used to price worldwide oils, fell 73 cents to $49.10 per barrel in London. The euro edged down to $1.1204 from $1.1214.
