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The Maharajah of Sydney

Well-known member
Jul 7, 2003
1,417
Sydney .
A de-coupling of the China contagion seen in far-eastern markets today with most Asian & Pacific Indices ex-China & Japan rallying after weaker openings.
Expect to see a a similar pattern emerge across Europe and then into the North American timezone.
 
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KZNSeagull

Well-known member
Nov 26, 2007
21,102
Wolsingham, County Durham
Don't go near the Rand. It's put on almost an entire Rand to the Pound in a little over a week.

I'm not a currency speculator. I just went on holiday there and realised I could have had 10% more sauvignon blanc if I'd waited a month.

:). Book again for Christmas - it will be 25 to the pound by then with the Chinese economy crashing.
 












piersa

Well-known member
Apr 17, 2011
3,155
London








cunning fergus

Well-known member
NSC Patron
Jan 18, 2009
4,891
Why is the euro strengthening as global stocks take a beating you ask ?

The three word answer : The Carry Trade.

Because of ECB interest rate cuts and QE, the Euro is cheaper and easier to borrow than virtually anything else.

Market participants have borrowed Euros and invested in higher-yielding assets or risky assets. Those assets are generally in other currencies - like US stocks.

And in in a market rout, investors cut trades back to cash and look for safety. So all the euro borrowing and selling is unwound.


Agreed, and with the Yuan devaluation the likelihood is the the ECB will increase the QE stimulus as oppose to reduce it.

Great news for the rich corporatists who can borrow this printed money, ergo the euro markets should weather this storm...........for now.
 








BLOCK F

Well-known member
Feb 26, 2009
6,723
Dipped my toe in the water this morning and topped up one of the funds in my SIPP.
That is all I am going to do at the moment; no doubt there are more fun and games to come yet.
 






piersa

Well-known member
Apr 17, 2011
3,155
London










Seagull on the wing

New member
Sep 22, 2010
7,458
Hailsham
Waited too long...the shares fell at an alarming rate....was going to buy more at low price,but yesterday my shares gained 25p per share.
 


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