• Global markets sliding
  • Euro a bright spot
  • Commodities plunge
  • Chinese markets freeze

The global equities market is in turmoil this morning after the Chinese markets froze for the day just 29 minutes after the opening bell.  This is the second time this week that China has had major selloffs and this one was spurred by central bank cutting the Yuan reference rate the most since August.  This the spear point of a larger global sell off that includes the US and European equities markets both of which are down significantly to start the year.

Commodities are also taking a beating to start the year with almost all metals down and oil continuing to fall on Middle East concerns and oversupply.  Gold is the only bright spot and is up 1% this morning as it flexes its safe haven status amid the market turmoil’s.  The biggest loser of this commodities plunge is Australia whose currency is down over 1% this morning.  This is also partly due to China’s economic issues which is Australia’s biggest trading partner.

To end on a positive note there was some good news out of Europe this morning as economic confidence unexpectedly rose in December.  Italy’s jobless rate also fell to three year lows and Germany’s factory orders increased more than expected with growth in domestic demand.  This has served to boost the Euro nicely as a bright spot in the currency market.

EURUSD: Euro up significantly this morning on good economic confidence numbers and good country specific data.

GBPUSD: The pound is trading down this morning on global uncertainty and fears of Brexit.

AUDUSD: Aussie dollar down significantly as Chinese issues continue and commodities drop.

USDCAD: Canadian dollar weakens further on oil prices.