China fears hit world stocks; copper recovers from near four-year low - News and Current Events | futures io social day trading
futures io futures trading

China fears hit world stocks; copper recovers from near four-year low
Updated: Views / Replies:173 / 0
Created: by kbit Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 100,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Thread Tools Search this Thread

China fears hit world stocks; copper recovers from near four-year low

  #1 (permalink)
Elite Member
Aurora, Il USA
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
kbit's Avatar
Posts: 5,886 since Nov 2010
Thanks: 3,304 given, 3,334 received

China fears hit world stocks; copper recovers from near four-year low

Reuters) - World stock indexes declined for a fourth day and copper dipped to near four-year lows before rebounding on Wednesday as worries about China's economic slowdown intensified.

The concerns over China also pressured the Chilean peso and other currencies closely linked to commodities markets, while increasing investor appetite for safe-haven assets boosted U.S. government bonds and gold.

The moves follow China's first domestic bond default, which has raised concerns about a possible unraveling of the many loan deals which have used copper as collateral.

Chinese firms that have difficulty raising loans have often bought copper as security for funds they borrow, but the 14 percent drop in copper's value this year is making banks more wary about the practice.

Data, including China's recent weak export numbers, has underscored worries that the world's second-largest economy is slowing. This has added to strains on emerging markets already hit by the U.S. Federal Reserve's decision to scale back its economic stimulus.

"People are reluctant to make big bets right now," said Marc Chandler, chief global currency strategist at Brown Brothers Harriman & Co in New York. "People are just reducing their short position in emerging market exposure."

Copper on the London Metal Exchange slid to a session low of $6,376.25 a ton, its weakest level since July 2010, before recovering to end at $6,505, up 0.5 percent from Tuesday's close. Three-month LME copper has shed more than 11 percent this year, including a 2.6 percent drop on Tuesday.

"Most people are still cautious so we can't expect a quick rebound," said Andrey Kryuchenkov, analyst at VTB Capital. "On a fundamental point of view we have to wait and see in the second quarter how China stimulates its economy."

On Wall Street, the S&P 500 reversed early losses and ended nearly flat amid signs of progress in diplomatic attempts to ease tensions in Ukraine.

The Dow Jones industrial average .DJI fell 11.17 points or 0.07 percent, to 16,340.08, the S&P 500 .SPX gained 0.57 points or 0.03 percent, to 1,868.2 and the Nasdaq Composite .IXIC added 16.144 points or 0.37 percent, to 4,323.332.

U.S. Secretary of State John Kerry will meet his Russian counterpart, Sergei Lavrov, in London on Friday ahead of a referendum Sunday on whether Ukraine's Crimean peninsula will join Russia.

"People are just kind of reassessing, they are looking at that headline and thinking maybe it is not going to turn out to be a disaster in Russia and Ukraine," said Ken Polcari, director of the NYSE floor division at O'Neil Securities in New York.

Shares of Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) fell sharply, a day after leaders of the Senate Banking Committee announced an agreement on legislation to wind down the government-owned mortgage financiers. Fannie Mae dropped 12.2 percent to $3.54, while shares of Freddie Mac tumbled 16.8 percent at $3.36. <ID:L2N0M91MB>

The difference in yield on Fannie Mae and Freddie Mac bonds over Treasuries declined on the view the Senate plan would assure the government's guarantee of their existing debt. The yield gap between five-year Fannie Mae notes due February 2019 over five-year Treasuries narrowed 0.005 percentage point to about 0.15 percentage point.

In Europe, shares .FTEU3 closed down 1.1 percent, with shares in big exporters among the hardest hit. German industrial conglomerate Siemens (SIEGn.DE) was down 2.2 percent and BASF (BASFn.DE), the world's fifth-largest agrochemicals and seeds maker, was down 1.9 percent.

An index of global stocks .MIWD00000PUS was down 0.5 percent, while an emerging market stock index .MSCIEF dropped 1.1 percent.

In the foreign exchange market, emerging market currencies rebounded from early losses tied to nervousness over China's economy.

The Chilean peso fell to near five-year lows on a deepening selloff in copper in Asian trading. Chile, a major copper exporter, saw its currency recover to 572.08 pesos.

The Aussie was up after falling earlier in the session.


U.S. Treasuries prices rose on worries over the health of China's economy, which helped fuel strong demand at the U.S. government's 10-year Treasury note auction.

The 10-year U.S. Treasury note was up 12/32 in price to yield 2.72 percent versus a yield of 2.766 percent late on Tuesday. Bond yields move inversely to their prices.

Gold surged 1.3 percent, hitting a near six-month high as fears of more corporate defaults in China and the tug-of-war between Russia, Ukraine and the West boosted bullion's appeal.

Spot gold gained 1.3 percent to $1,367.04 an ounce, having reached $1,370.60, the loftiest since September 20


Economists are concerned that recent moves by Beijing to stamp out speculation on its rising currency and overly easy lending may have overshot and will damage China's economy.

Reuters reported that China's central bank is prepared to loosen monetary policy if economic growth slows further by cutting the amount of cash that banks must keep as reserves. This was a positive sign for markets, but also a possible indication of Beijing's growing nervousness.


Oil prices declined, with U.S. crude oil falling by more than 2 percent in its biggest drop in two months, after the United States announced unexpected plans for a test release of strategic oil reserves while weekly data showed a big rise in crude stockpiles.

Brent crude fell 53 cents to settle at $108.02 and U.S. oil futures dropped $2.04 to settle at $97.99.

China fears hit world stocks; copper recovers from near four-year low | Reuters

Reply With Quote


futures io > > > > China fears hit world stocks; copper recovers from near four-year low

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

July Journal Challenge - $500 in Amazon Gift Cards!


Battlestations: $750 in prizes - Show us your trading desk!


TBA: FuturesTrader71 w/Morad Askar

Elite only

Similar Threads
Thread Thread Starter Forum Replies Last Post
Stocks to Hit Record High Next Year—Eventually: Pro Quick Summary News and Current Events 0 September 14th, 2012 05:20 PM
China GDP Growth at 2½ Year Low but Tops Forecast Quick Summary News and Current Events 0 January 17th, 2012 12:20 AM
Recovery Seen Next Year for World Stocks After Dire 2011 Quick Summary News and Current Events 0 September 29th, 2011 09:10 PM
Stocks Hit Hard as Euro Zone Fears Tear Through Markets Quick Summary News and Current Events 0 September 12th, 2011 06:50 AM
European Stocks Fall Sharply as Debt Fears Hit Banks Quick Summary News and Current Events 0 September 5th, 2011 09:20 AM

All times are GMT -4. The time now is 07:40 AM. (this page content is cached, log in for real-time version)

Copyright © 2018 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432,
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2018-07-21 in 0.10 seconds with 14 queries on phoenix