Overview
- Tighter policies on leverage sent Chinese stocks lower
- Dollar edged lower after Fed meeting minutes
- European stocks fall as Tokyo and Wall Street take a hiatus
China’s stock market dwindled after its bond market weakened. Chinese authorities are moving towards cutting leverage, which sent shocks through Chinese assets.
Concerns were amplified by news that Beijing had stopped all approvals for new online lending companies.
The HSI dropped 1% off its value, after touching the 30,000 level for the first time in ten years.
Japan’s markets are closed for a public holiday.
The dollar is trading at the lowest levels seen since October, after the latest Federal Reserve meeting showed key policymakers were concerned about soft inflation.
Inflation has been persistently low, remaining under the 2% target mark and forcing investors to conclude that the murky readings are more than just ‘’transitory’’.
The Federal Reserve is going through immense change, with Donald Trump set to choose 4 new Fed members out of a 7-member board. The president has already chosen Janet Yellen’s successor, Jay Powell.
The euro is 0.2% stronger against the dollar, while the pound has lost 0.02% against the greenback.
Equities are subdued as US investors break for Thanksgiving. European equities are reluctant to touch recent highs. Still, the DAX 30 trading 0.11% higher and France’s CAC 40 is 0.6% stronger.
London’s FTSE 100 is feeling more lacklustre than its European peers, trading 0.07% lower.
Oil markets are diverging, after rising output from US producers. Brent oil has lost 0.12%, while crude oil has added 0.17%.