This week we have market news coming in from absolutely everywhere. With most market commentators focusing on Greece, arguably of more concern to the Australasian region is the situation currently being seen in China.
With all the news about today, please see the following snapshots of market news today;
**** China ****
• Chinese markets had risen as much as 110 percent from November 2014 to a peak in June 2015.
• Chinese market totally overvalued due to recent “gambling” and frantic buying on the market.
• Market has now tumbled more than 20 percent since June 12 in jaw-dropping volatility as money surges in and out of the market.
• Chinese Government is initiating emergency measures reportedly costing the country around 1.7 trillion yen in an attempt to stabilise the market, and prevent a stock market crash.
• Officials have frozen any new share issues.
• With stock markets falling, its economy continues to sputter despite a series of government stimulus measures, suggesting that the world’s top consumer may be facing deep-rooted problems.
**** Greece ****
• With the Greek debt crisis continuing to play out, banks remain shut with ATM’s issuing a maximum 60 Euro per day to customers.
• Greeks have overwhelmingly rejected conditions of a rescue package from creditors, throwing the future of the country’s eurozone membership into further doubt and deepening a standoff with lenders.
• Stunned European leaders have called a summit for Tuesday to discuss their next move.
• Greece in uncharted waters: risking a banking collapse that could force it out of the euro.
**** Metal Markets ****
• It’s bad news on every front for copper investors and prices are facing their biggest decline in nearly six months.
• The Greek “no” and the continuing slide in Chinese equity markets are giving the metals markets the jitters, according to Commerzbank. “Evidently institutional market participants in particular are jettisoning risky assets in grand style,” including base metals.
• Speculators continue to display “extreme pessimism” with the level of net short positions on copper reaching its highest point since last October.
• “Volatility in the base-metal market is expected to remain high as Greece will seek to negotiate debt restructuring in coming days,”
**** Australian Dollar ****
• Greece turmoil sends Australian dollar below US75c for first time since 2009 • In early Asia-Pacific trade, the local unit was buying US74.78¢, down 2 per cent on the same time on Friday, and its lowest level since May 2009.
• The Australia dollar was already under pressure late last week after a surprise 6 per cent drop in the price of iron ore.
• The Australian dollar is currently trading at 0.7492.