Dollar Pares Yuan-Inflicted Losses While Oil Extends 6-Year Low

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The dollar clawed back some of this week’s losses as concern over China’s devaluation ebbed and a rebound in retail sales shifted focus back to the case for higher U.S. interest rates. Crude oil extended its drop at a six-year low.

The greenback was steady at $1.1158 per euro by 8:56 a.m. in Tokyo after rallying Thursday to halt the common currency’s longest rally since April. New Zealand’s dollar fell after retail sales data, as the offshore yuan rose. While Asian index futures were mixed in recent trading, Standard & Poor’s 500 Index futures lost 0.1 percent after the gauge fluctuated. U.S. oil fell to $42 a barrel, set for a seventh weekly decline.

China’s pledge to curb excessive volatility in the currency and growth in U.S. retail sales reassured investors amid concern the steepest drop in the yuan since 1996 will unsettle global markets and impact the timeline for Federal Reserve policy tightening. Concern the devaluation signals a Chinese economy in trouble continues to dog crude, coupling with evidence of rising output to fuel anxiety over a glut. Taiwan reports on growth Friday, while South Korea is closed.

Source: Bloomberg

Gold Ends Longest Run of Gains in 3 Months as China Calms Market

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Gold declined, ending its longest run of gains in almost three months, as China eased concern about a devaluation of its currency.

Global equities rebounded, and demand ebbed for haven assets including bonds and precious metals, after the People’s Bank of China quelled fears of broader currency wars with verbal support for the yuan. Bullion rose in the previous five days.

Gold is often used as an alternative store of value and tends to rise when currencies weaken. The metal deepened losses Thursday as the dollar extended gains amid increasing expectations that improving economic growth will push the Federal Reserve to increase interest rates this year. Sales at U.S. retailers rose in July, and jobless claims are hovering close to a four-decade low, government data show.

Gold futures for December delivery declined 0.7 percent to settle at $1,115.60 an ounce at 1:52 p.m. on the Comex in New York, the biggest loss since July 24.

Source : Bloomberg

Bursa Jepang Dibuka Turun Dipimpin oleh Saham Energi

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Bursa saham Jepang jatuh, memperpanjang penurunan mingguan, karena investor menunggu keputusan kebijakan lebih lanjut dari China terhadap arah yuan dan minyak turun ke posisi terendah dalam enam tahun terakhir, memberi tekanan bagi saham-saham energi.

Indeks Topix melemah 0,2% ke level 1,664.84 pada pukul 09:01 pagi di Tokyo, berada di jalur untuk penurunan mingguan sebesar 0,8%. Indeks Nikkei 225 Stock Average turun 0,3% ke level 20,532.82. Minyak mentah West Texas Intermediate (WTI) turun di bawah $ 42 per barel di New York untuk pertama kalinya sejak tahun 2009. Yen melemah terhadap yuan untuk pertama kalinya dalam empat hari di perdagangan luar negeri, memangkas keuntungan dari 4% sejak Selasa yang lalu, karena investor menunggu keputusan terkait suku bunga acuan hari ini untuk mata uang China.

Keputusan mengejutkan China untuk melonggarkan manajemen yuan memicu penurunan mata uang, menghilangkan titik stabilitas untuk pasar global dan memicu keprihatinan atas dampaknya pada timeline pengetatan moneter oleh pemerintah AS. Jaminan dari pejabat China bahwa mereka akan mengekang volatilitas yang berlebihan membantu kerugian dalam saham-saham global dan greenback, mengurangi permintaan untuk aset haven.

Devaluasi yuan minggu ini telah mendorong minyak dan logam industri lebih rendah di tengah spekulasi mata uang China yang lebih lemah akan merugikan permintaan dengan membuat impor dalam mata uang dolar lebih mahal dan kekhawatiran bahwa ekonomi terbesar kedua di dunia sedang melambat lebih dari yang diperkirakan. Sementara itu, kesepakatan nuklir Iran dengan kekuatan dunia pada bulan lalu juga memicu spekulasi bahwa negara tersebut akan memompa lebih banyak minyak mentah, menambahkan berlimpahnya pasokan.

Kontrak pada indeks Standard & Poor 500 tergelincir 0,1% setelah indeks yang mendasari kehilangan 0,1% pada hari Kamis di New York.(frk)

Sumber: Bloomberg

U.S. Stocks Erase Gains Amid Retail Sales as China Worries Ease

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U.S. stocks slipped after erasing gains in the last 90 minutes of trading, while anxiety eased over China’s shock currency devaluation leaving investors focused on economic data and the pace of any Federal Reserve interest-rate increases.

The Standard & Poor 500 Index wobbled between gains and losses after yesterday staging its biggest intraday recovery in three years, as technical levels held up amid China’s roiling of global markets. Stocks held Thursday in the tightest trading range since 1927 as labor and sales data bolstered the case for higher interest rates as soon as next month.

The S&P 500 slipped 0.1 percent to 2,083.46 at 4 p.m. in New York, after ranging between a 0.3 percent gain and falling as much as 0.4 percent.

The S&P 500 yesterday erased a 1.5 percent loss sparked by concerns China economy is faltering, reversing after it fell below 2,050. That’s toward the bottom end of a range its been stuck in all year, with the top being its May 21 record of 2,130. The gauge has advanced 1.2 percent in 2015, never closing more than 3.5 percent above or below where it started the year.

Source : Bloomberg

U.S. Stocks Fluctuate After Retail Sales as China Concern Eases

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U.S. stocks fluctuated, after panic eased over China shock currency devaluation, leaving investors focused on economic data and the pace of any Federal Reserve interest-rate increases.

The Standard & Poor 500 Index wobbled between gains and losses after the index yesterday staged its biggest intraday recovery in three years, as technical levels held up amid China’s roiling of global markets. Stocks held Thursday in the tightest trading range since 1927 as labor and sales data bolstered the case for higher interest rates as soon as next month.

The S&P 500 increased 0.1 percent to 2,088.52 at 12:16 p.m. in New York, after earlier losing as much as 0.4 percent. The Dow Jones Industrial Average rose 29.90 points, or 0.2 percent to 17,432.41, and the Nasdaq Composite Index added 0.3 percent.

The S&P 500 yesterday erased an early loss of 1.5 percent loss sparked by concerns China economy is faltering, as the gauge rose back above its average price during the past 200 days. The index has closed below its 200-day moving average only two times in 2015, as the level once again halted declines in equities. The gauge has advanced 1.4 percent this year.

Source : Bloomberg