Reuters Insider - China turmoil sends oil, stocks sliding

Baader Bank AG

07/01/2016 14:15

Click the following link to watch video:                              
 https://insider.thomsonreuters.com/link.html?cn=share&cid=1547730&shareToken=MzplN2YyZWYwYS1iZGE4LTQ1OWQtODcyNS1kNzFkYjk1MWZmYzc%3D&playerName=ReutersNews 
                                                                       
 Source:             Thomson Reuters                                   
                                                                       
 Description:        Global shares tumble for a sixth day while oil    
                     prices slide to levels not seen since the early   
                     2000s, after China allows the yuan to fall sharply 
                     again and Shanghai shares drop by 7 percent.      
 
 
(To access all exclusive Reuters Insider programming visit: http://insider.thomsonreuters.com) 
 
 Short Link:  http://reut.rs/1TH3RfB  
 
 
Transcript (May be auto-generated)

                 They hoped it would be a one-off, but two days later Chinese traders had nothing
to trade. Equities markets were suspended for a second time after Shanghai 
shares tumbled 7% and triggered global market turmoil. A rule Chinese 
authorities introduced to prevent big share sell-offs seemingly backfired. 
Francis Lun is from GEO Securities. This circuit breaker rule not only did not 
reduce market fluctuation, actually, it exacerbated the market fluctuation. 
China responded by trying to guide the Yuan lower. That ignited fears others 

Asian currencies would try and devalue too. Oil, already suffering from over 
production and disputes in the Middle East, couldn't stand the pressure. Brent 
crude prices slid below $33 a barrel, close to a 12-year low. IG's Alastair 
McCaig. It does just go to show how juvenile some of the retail investment 
community of the Chinese equity markets are and partially how they are still 
trying to get to grips with this new tool available to the People's Bank of 
China. 

European shares again followed Asia's lower, despite encouraging data from the 
Eurozone. Fears of an even slower China could hardly come at a worst time for 
the region. Baader's Bank's Robert Halver. China's important for the world 
economy definitely, and once right now we see that China is losing momentum. 
That's especially negative for Germany. Investors sought safety in top-rated 
German bonds. And in currency markets, Japan's Yen rose to its strongest in four
and a half years. All this at the start of a New Year many hoped would see 
recovery not more risk