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China markets turmoil 'sparked by exodus of key regulators' - live | China markets turmoil 'sparked by exodus of key regulators' - live |
(35 minutes later) | |
4.17pm AEST07:17 | |
SUMMARY | |
I’m handing over to Graeme Wearden in London now so a quick summary of where we are. | |
Updated at 4.20pm AEST | |
4.01pm AEST07:01 | |
The business investment figures for Australia published earlier today have prompted Goldman Sachs and UBS to say that their Q2 GDP predictions might be wrong on the downside. | |
Chris Weston of IG asking if the figure could even be negative... | |
3.39pm AEST06:39 | 3.39pm AEST06:39 |
On China, Angus Nicholson makes the point that many others have made that China might have avoided this week’s shenanigans if they’d taken some action over the weekend instead of leaving it to Tuesday night. | On China, Angus Nicholson makes the point that many others have made that China might have avoided this week’s shenanigans if they’d taken some action over the weekend instead of leaving it to Tuesday night. |
The stock market seems to be responding positively to these [stimulus] moves. One wonders if the record losses seen globally on Monday could have been avoided had the RRR cuts come over the weekend as some called for. | The stock market seems to be responding positively to these [stimulus] moves. One wonders if the record losses seen globally on Monday could have been avoided had the RRR cuts come over the weekend as some called for. |
3.37pm AEST06:37 | 3.37pm AEST06:37 |
Jackson Hole symposium starts tonight | Jackson Hole symposium starts tonight |
It looks like the Fed’s annual symposium of economists and central bankers in Jackson Hole, Wyoming this week will be closely watched by the markets for smoke signals as to where policy might be heading. | It looks like the Fed’s annual symposium of economists and central bankers in Jackson Hole, Wyoming this week will be closely watched by the markets for smoke signals as to where policy might be heading. |
Angus Nicholson at IG in Melbourne writes: | Angus Nicholson at IG in Melbourne writes: |
Attention will be keenly focussed on the speeches at the Jackson Hole symposium, which begins tonight. However, I think the market will largely be looking towards December as the most likely date if a [Fed] rate hike happens this year. | Attention will be keenly focussed on the speeches at the Jackson Hole symposium, which begins tonight. However, I think the market will largely be looking towards December as the most likely date if a [Fed] rate hike happens this year. |
Michael Hewson at CMC Markets in London agrees: | Michael Hewson at CMC Markets in London agrees: |
3.29pm AEST06:29 | 3.29pm AEST06:29 |
3.24pm AEST06:24 | 3.24pm AEST06:24 |
Europe and US markets seen opening higher | Europe and US markets seen opening higher |
European and US markets look set to open higher with futures pointing to a 0.3% rise in London and the Dow up 0.13% | European and US markets look set to open higher with futures pointing to a 0.3% rise in London and the Dow up 0.13% |
Updated at 3.24pm AEST | Updated at 3.24pm AEST |
3.17pm AEST06:17 | 3.17pm AEST06:17 |
3.14pm AEST06:14 | 3.14pm AEST06:14 |
The Chinese markets are about to resume after their lunch break but they’ve had a decent day so far. | The Chinese markets are about to resume after their lunch break but they’ve had a decent day so far. |
The Shanghai Composite rose as much 3% in early trade but ended the morning up 1.55% at 2,972 points. | The Shanghai Composite rose as much 3% in early trade but ended the morning up 1.55% at 2,972 points. |
The Hang Seng in Hong Kong was up 2.28% at 21,560. | The Hang Seng in Hong Kong was up 2.28% at 21,560. |
And that strange thing sentiment might have turned a bit. | And that strange thing sentiment might have turned a bit. |
“From today, I’m no longer pessimistic,” Jiang Chao, a strategist at Haitong Securities. | “From today, I’m no longer pessimistic,” Jiang Chao, a strategist at Haitong Securities. |
He reckons China’s central bank will cut interest rates further. | He reckons China’s central bank will cut interest rates further. |
2.38pm AEST05:38 | 2.38pm AEST05:38 |
'China surprised by reaction to yuan devaluation' – reports | 'China surprised by reaction to yuan devaluation' – reports |
Another interesting take from Reuters and some of the factors behind the China turmoil. | Another interesting take from Reuters and some of the factors behind the China turmoil. |
It is reporting that China’s policy makers were surprised at the adverse world reaction to its moves to devalue the yuan two weeks ago, quoting an unnamed economist at the cabinet’s think-tank. | It is reporting that China’s policy makers were surprised at the adverse world reaction to its moves to devalue the yuan two weeks ago, quoting an unnamed economist at the cabinet’s think-tank. |
Any plans that might have existed to weaken the currency by up 10% (it’s so far off about 4%) have faded, Reuters says, because of anxiety about how such a move could fuel further capital outflows (see the Guardian’s Phillip Inman on this subject). | Any plans that might have existed to weaken the currency by up 10% (it’s so far off about 4%) have faded, Reuters says, because of anxiety about how such a move could fuel further capital outflows (see the Guardian’s Phillip Inman on this subject). |
Government economists and policy advisers say the PBoC will now try to stop the yuan weakening much past 6.5 per dollar, which is 4.5% below its pre-devaluation levels. On Thursday morning, the yuan traded as low as 6.4162 per dollar. | Government economists and policy advisers say the PBoC will now try to stop the yuan weakening much past 6.5 per dollar, which is 4.5% below its pre-devaluation levels. On Thursday morning, the yuan traded as low as 6.4162 per dollar. |
The economist says: | The economist says: |
The global reaction was bigger than expected. The global economy is very fragile. Competitive currency devaluations could in turn affect China’s own economy - undermine its exports and investment. | The global reaction was bigger than expected. The global economy is very fragile. Competitive currency devaluations could in turn affect China’s own economy - undermine its exports and investment. |
[We] chose the timing as the economy weakened and the stock market plunged, sending out a wrong signal to foreign countries that you want to spur the economy through devaluation and leading to competitive devaluations. | [We] chose the timing as the economy weakened and the stock market plunged, sending out a wrong signal to foreign countries that you want to spur the economy through devaluation and leading to competitive devaluations. |
This put us on the defensive; it looks like China is the trigger. | This put us on the defensive; it looks like China is the trigger. |
Updated at 2.40pm AEST | Updated at 2.40pm AEST |
2.27pm AEST05:27 | 2.27pm AEST05:27 |
The Aussie dollar is having a tough afternoon and heading back towards lows of US70.70 touched overnight. | The Aussie dollar is having a tough afternoon and heading back towards lows of US70.70 touched overnight. |
It’s buying US71.18c at the moment or 2.18 of your British pounds. Good time for holidays Down Under, I’d say. | It’s buying US71.18c at the moment or 2.18 of your British pounds. Good time for holidays Down Under, I’d say. |
2.16pm AEST05:16 | 2.16pm AEST05:16 |
Thailand exports down 3.6% year-on-year and imports down 12.7% | Thailand exports down 3.6% year-on-year and imports down 12.7% |
2.00pm AEST05:00 | 2.00pm AEST05:00 |
China market woes blamed on exodus of regulators | China market woes blamed on exodus of regulators |
Interesting piece on Reuters about how some of the problems could be down to the loss of key regulatory personnel. | Interesting piece on Reuters about how some of the problems could be down to the loss of key regulatory personnel. |
After the GFC, it says, Beijing poached top Chinese talent from overseas banks to come home and overhaul the country’s financial system. But by June this year, they’d become disillusioned and headed back to the private sector: | After the GFC, it says, Beijing poached top Chinese talent from overseas banks to come home and overhaul the country’s financial system. But by June this year, they’d become disillusioned and headed back to the private sector: |
The best and brightest returnees, known in China as “sea turtles”, had already left for the private sector, disillusioned and disappointed. | The best and brightest returnees, known in China as “sea turtles”, had already left for the private sector, disillusioned and disappointed. |
A former official at the China Securities Regulatory Commission, one of a group of 20 high-profile returnees, recalled the CSRC’s appeal to make “sacrifices for the motherland”. | A former official at the China Securities Regulatory Commission, one of a group of 20 high-profile returnees, recalled the CSRC’s appeal to make “sacrifices for the motherland”. |
“We moved our families back to China and gave up high-paying jobs, because we wanted to contribute,” he said. | “We moved our families back to China and gave up high-paying jobs, because we wanted to contribute,” he said. |
He said the group was sent for special training at Jinggangshan, a former revolutionary base used by Mao Zedong during the Chinese civil war. | He said the group was sent for special training at Jinggangshan, a former revolutionary base used by Mao Zedong during the Chinese civil war. |
Their idealism soon turned to cynicism. Their pay was a fraction of what they could earn in the private sector, and the CSRC didn’t seem to value them. | Their idealism soon turned to cynicism. Their pay was a fraction of what they could earn in the private sector, and the CSRC didn’t seem to value them. |
Several years passed, and none of us got promoted,” said the official. “Some of us didn’t even obtain a concrete position.” | Several years passed, and none of us got promoted,” said the official. “Some of us didn’t even obtain a concrete position.” |
“Just at the time they needed people with both domestic and international experience, those most internationally experienced people were forced out,” said Liu Li-Gang, China economist at ANZ. | “Just at the time they needed people with both domestic and international experience, those most internationally experienced people were forced out,” said Liu Li-Gang, China economist at ANZ. |
Reuters notes that the CSRC did not reply to requests for comment. | Reuters notes that the CSRC did not reply to requests for comment. |
1.55pm AEST04:55 | 1.55pm AEST04:55 |
Fairly steady on the markets still. Tokyo is well-placed at lunch having put on 1.89% without loss, while in Australia the ASX is batting through the break at +1.28%. | Fairly steady on the markets still. Tokyo is well-placed at lunch having put on 1.89% without loss, while in Australia the ASX is batting through the break at +1.28%. |
In China, the Shanghai Comp has played a riskier knock but is up 1.55% for the day so far despite nearly falling into the trap earlier in the session. | In China, the Shanghai Comp has played a riskier knock but is up 1.55% for the day so far despite nearly falling into the trap earlier in the session. |
Elsewhere: | Elsewhere: |
Updated at 1.55pm AEST | Updated at 1.55pm AEST |
1.41pm AEST04:41 | 1.41pm AEST04:41 |
Grogonomics analysis | Grogonomics analysis |
More great writing from the Guardian on the China business, this time from our resident Australian economics commentator Greg Jericho. | More great writing from the Guardian on the China business, this time from our resident Australian economics commentator Greg Jericho. |
His take is that the plunge in Chinese markets isn’t that bad per se – it’s more what it says about demand for Australian exports that is the problem. | His take is that the plunge in Chinese markets isn’t that bad per se – it’s more what it says about demand for Australian exports that is the problem. |
Deconstructing Joe Hockey’s analysis of the Chinese economy this week that the fundamental were improving – a triumph of the “she’ll be right” school of philosophy – Greg writes that Beijing wouldn’t have cut rates four times this year if they weren’t worried: | Deconstructing Joe Hockey’s analysis of the Chinese economy this week that the fundamental were improving – a triumph of the “she’ll be right” school of philosophy – Greg writes that Beijing wouldn’t have cut rates four times this year if they weren’t worried: |
Of course the Chinese government is only doing such things because it is worried that the “fundamentals” are not actually “gradually improving”. | Of course the Chinese government is only doing such things because it is worried that the “fundamentals” are not actually “gradually improving”. |
Related: China’s slumping economy a bigger threat to Australia than its plunging stock market | Related: China’s slumping economy a bigger threat to Australia than its plunging stock market |
1.15pm AEST04:15 | 1.15pm AEST04:15 |
It's the Fed, stupid | It's the Fed, stupid |
Quite a good one-sentence analysis from Shigemitsu Tsuruta, senior strategist at SMBC Friend Securities in Tokyo, on Reuters referring to speculation that the Fed will not raise rates in September: | |
The market has started to price in this prospect while the current level provides a good short-term rebound opportunity. | The market has started to price in this prospect while the current level provides a good short-term rebound opportunity. |
Updated at 4.14pm AEST | |
1.10pm AEST04:10 | 1.10pm AEST04:10 |
LUNCHTIME SUMMARY | LUNCHTIME SUMMARY |
OK, trading is looking quite serene today. | OK, trading is looking quite serene today. |
Here’s what’s happened so far: | Here’s what’s happened so far: |
Updated at 1.13pm AEST | Updated at 1.13pm AEST |
12.55pm AEST03:55 | 12.55pm AEST03:55 |
Tom’s excellent piece also includes some fascinating insights from China expert Fraser Howie, author of Red Capitalism, who talks about what the struggles of working people tell us about the country’s governing class: | Tom’s excellent piece also includes some fascinating insights from China expert Fraser Howie, author of Red Capitalism, who talks about what the struggles of working people tell us about the country’s governing class: |
Much of the party’s legitimacy comes from the economy and from the Faustian bargain of limited political freedoms and social freedoms against economic prosperity. Any time there is a slowing economy the government is concerned about it for exactly those reasons – the people lose their jobs, there will not be the wage growth, people will not be able to enjoy the benefits of prosperity. | Much of the party’s legitimacy comes from the economy and from the Faustian bargain of limited political freedoms and social freedoms against economic prosperity. Any time there is a slowing economy the government is concerned about it for exactly those reasons – the people lose their jobs, there will not be the wage growth, people will not be able to enjoy the benefits of prosperity. |
The fear has to be … that party stability is on the line if the economy doesn’t work.” | The fear has to be … that party stability is on the line if the economy doesn’t work.” |
Intra-party battles are already going on thick and fast. The Chinese Communist party is more worried than almost any outside observer about the stability of the party. Foreigners always say: ‘Oh, yes, it will be fine’. But I think the Chinese communists are far better aware of how they could be toppled or how their party could collapse from the inside relatively quickly. | Intra-party battles are already going on thick and fast. The Chinese Communist party is more worried than almost any outside observer about the stability of the party. Foreigners always say: ‘Oh, yes, it will be fine’. But I think the Chinese communists are far better aware of how they could be toppled or how their party could collapse from the inside relatively quickly. |
12.41pm AEST03:41 | 12.41pm AEST03:41 |
Tom Phillips, our correspondent in Beijing, has filed a terrific piece on how poor migrant workers are feeling the effects of the economic slowdown in China. | Tom Phillips, our correspondent in Beijing, has filed a terrific piece on how poor migrant workers are feeling the effects of the economic slowdown in China. |
He met Liu, a scrap metal dealer whose business on the hardscrabble outskirts of Beijing has dried up, forcing her to return to her home village in south-east China with her two young children. | He met Liu, a scrap metal dealer whose business on the hardscrabble outskirts of Beijing has dried up, forcing her to return to her home village in south-east China with her two young children. |
Abandoning Beijing was her family’s only option, she said. | Abandoning Beijing was her family’s only option, she said. |
It’s natural. We came here for work. We lost 200,000 yuan. We can’t afford to live here any more. Maybe one day we’ll return - but I don’t know when. | It’s natural. We came here for work. We lost 200,000 yuan. We can’t afford to live here any more. Maybe one day we’ll return - but I don’t know when. |
Related: China's migrant workers head home as Beijing faces an economic storm | Related: China's migrant workers head home as Beijing faces an economic storm |
12.30pm AEST03:30 | 12.30pm AEST03:30 |
China slowdown won't harm Japan too badly – Kuroda | China slowdown won't harm Japan too badly – Kuroda |
Haruhiko Kuroda, the governor of the Bank of Japan, has been speaking in New York about the China situation (still not sure there’s a consensus on crisis). | Haruhiko Kuroda, the governor of the Bank of Japan, has been speaking in New York about the China situation (still not sure there’s a consensus on crisis). |
He said China’s economy is likely to slow further although he predicted growth in its GDP will remain at 6-7% this year and next, Reuters reports: | He said China’s economy is likely to slow further although he predicted growth in its GDP will remain at 6-7% this year and next, Reuters reports: |
Already exports to China have been affected, but I do not think that Japan exports in coming years will be (very) negatively affected ... partly because China will maintain growth and Japanese capital goods are... quite competitive. | Already exports to China have been affected, but I do not think that Japan exports in coming years will be (very) negatively affected ... partly because China will maintain growth and Japanese capital goods are... quite competitive. |
Kuroda said China’s monetary easing was an appropriate step to mitigate any impact on its economy, adding that some market players have become “too pessimistic” on the Chinese economy given its growth is “still quite robust”. | Kuroda said China’s monetary easing was an appropriate step to mitigate any impact on its economy, adding that some market players have become “too pessimistic” on the Chinese economy given its growth is “still quite robust”. |
On US monetary policy, Kuroda said he expected the Federal Reserve to raise interest rates sometime this year, which would be a strong positive signal for the global economy. | On US monetary policy, Kuroda said he expected the Federal Reserve to raise interest rates sometime this year, which would be a strong positive signal for the global economy. |
Updated at 12.30pm AEST | Updated at 12.30pm AEST |
12.20pm AEST03:20 | 12.20pm AEST03:20 |
Those poor investment numbers took a bit of bite out of the ASX200 – it fell to around 5240 – but it’s back up again now because the stats are actually more promising than the headline number suggests. | Those poor investment numbers took a bit of bite out of the ASX200 – it fell to around 5240 – but it’s back up again now because the stats are actually more promising than the headline number suggests. |
While capex fell in the second quarter to the end of June, businesses are planning to invest more than previously thought in the rest of the year to the tune of about 10% more. | While capex fell in the second quarter to the end of June, businesses are planning to invest more than previously thought in the rest of the year to the tune of about 10% more. |
12.05pm AEST03:05 | 12.05pm AEST03:05 |
Australian business investment falls | Australian business investment falls |
Business investment fell 4% in the June quarter, the Australian Bureau of Statistics said on Thursday. | Business investment fell 4% in the June quarter, the Australian Bureau of Statistics said on Thursday. |
The figures, which cover investment in capital goods and include such things as buildings and equipment, was worse than market forecasts, Australian Associated Press reports. | The figures, which cover investment in capital goods and include such things as buildings and equipment, was worse than market forecasts, Australian Associated Press reports. |
Businesses expect to invest $114.8bn this financial year, which is 23.4% lower than the corresponding estimate made at the same time last year.The final estimate for business investment in 2014/15 is $150.58bn – 4.7% lower than investment in 2013/14. | Businesses expect to invest $114.8bn this financial year, which is 23.4% lower than the corresponding estimate made at the same time last year.The final estimate for business investment in 2014/15 is $150.58bn – 4.7% lower than investment in 2013/14. |
Poor figures for a government banking on selling a growth story. | Poor figures for a government banking on selling a growth story. |
11.54am AEST02:54 | 11.54am AEST02:54 |
Yuan weakens | Yuan weakens |
China’s stock markets may have risen today but the yuan has weakened on hints from the US about the Fed delaying a rate hike. | |
The People’s Bank of China set the reference rate for the yuan at 6.4085 per dollar prior to market open, its lowest level since 2011 and firmer than the previous day’s closing market quote of 6.4105. | The People’s Bank of China set the reference rate for the yuan at 6.4085 per dollar prior to market open, its lowest level since 2011 and firmer than the previous day’s closing market quote of 6.4105. |
Updated at 4.15pm AEST | |
11.49am AEST02:49 | 11.49am AEST02:49 |
Interactive | Interactive |
Great work by the graphics team in London to produce this interactive on how a China meltdown could affect different countries. | Great work by the graphics team in London to produce this interactive on how a China meltdown could affect different countries. |
Related: How China's economic slowdown could weigh on the rest of the world | Related: How China's economic slowdown could weigh on the rest of the world |
11.45am AEST02:45 | 11.45am AEST02:45 |
Hang Seng in Hong Kong is also up with a rise of 2.43%. | Hang Seng in Hong Kong is also up with a rise of 2.43%. |
11.41am AEST02:41 | 11.41am AEST02:41 |
Chinese markets open up | Chinese markets open up |
Looking good for Shanghai. | Looking good for Shanghai. |
11.39am AEST02:39 | 11.39am AEST02:39 |
Just waiting for the first prices to come through from China but the Australian market is purring away nicely, up 1.5%. | Just waiting for the first prices to come through from China but the Australian market is purring away nicely, up 1.5%. |
IG Market analyst Angus Nicholson reckon whatever happens in China won’t have too much impact today: | IG Market analyst Angus Nicholson reckon whatever happens in China won’t have too much impact today: |
The Chinese stock market is having less of an influence on the Aussie stocks at the moment. | The Chinese stock market is having less of an influence on the Aussie stocks at the moment. |
The Chinese economy is still a concern for the world economy at the moment but we’re seeing the Shanghai Composite bottom a bit, so I don’t think we’re going to see as much influence today when the Chinese stock market opens. | The Chinese economy is still a concern for the world economy at the moment but we’re seeing the Shanghai Composite bottom a bit, so I don’t think we’re going to see as much influence today when the Chinese stock market opens. |
11.34am AEST02:34 | 11.34am AEST02:34 |
The plunge in commodities prices this year – especially oil – has been astonishing. | The plunge in commodities prices this year – especially oil – has been astonishing. |
Despite a rise on Thursday because of an unexpected fall in inventory last week, US crude was still under $40 a barrel at $39.19. Brent, the global oil benchmark, gained 64 cents to $43.78 a barrel. | Despite a rise on Thursday because of an unexpected fall in inventory last week, US crude was still under $40 a barrel at $39.19. Brent, the global oil benchmark, gained 64 cents to $43.78 a barrel. |
Seriously though, does anyone remember peak oil? I guess it could still turn around sharply again with a wider Middle East conflict or some such black swan event, but the idea that economies might be broken by sky-high oil prices has been replaced by the one that says certain countries could be broken by low prices. | Seriously though, does anyone remember peak oil? I guess it could still turn around sharply again with a wider Middle East conflict or some such black swan event, but the idea that economies might be broken by sky-high oil prices has been replaced by the one that says certain countries could be broken by low prices. |
Check out how Russia and even Saudi Arabia are struggling with the falling price. | Check out how Russia and even Saudi Arabia are struggling with the falling price. |
Updated at 11.35am AEST | Updated at 11.35am AEST |
11.08am AEST02:08 | 11.08am AEST02:08 |
What he really means is, will China’s chart go more like Thunderbirds 3 or Thunderbirds 4, the one that went underwater? | What he really means is, will China’s chart go more like Thunderbirds 3 or Thunderbirds 4, the one that went underwater? |
We’ll find out when trading starts at 11.30am Sydney time, ie in about 22 minutes. | We’ll find out when trading starts at 11.30am Sydney time, ie in about 22 minutes. |
11.03am AEST02:03 | 11.03am AEST02:03 |
But with Wall Street back on song and the Asia pacific markets up again today, what can possibly can wrong? | But with Wall Street back on song and the Asia pacific markets up again today, what can possibly can wrong? |
Well, investors are still not convinced about what’s going to happen in China where the weak stock market is seen as being important more because it suggests all is not well with the wider economy, rather than as the root of any systemic problem. | Well, investors are still not convinced about what’s going to happen in China where the weak stock market is seen as being important more because it suggests all is not well with the wider economy, rather than as the root of any systemic problem. |
Reuters says a “fresh slide in China’s equities [on Thursday] and worries that China may allow a further depreciation of the yuan risked hampering a recovery in other riskier assets in Asia and beyond”. | Reuters says a “fresh slide in China’s equities [on Thursday] and worries that China may allow a further depreciation of the yuan risked hampering a recovery in other riskier assets in Asia and beyond”. |
It quotes Jasper Lawler, market analyst at CMC Markets: | It quotes Jasper Lawler, market analyst at CMC Markets: |
Rather than getting ahead of the game with a well thought out plan for stabilising the economy, the PBOC appears to be reluctantly easing policy any time there’s a drop in share prices. | Rather than getting ahead of the game with a well thought out plan for stabilising the economy, the PBOC appears to be reluctantly easing policy any time there’s a drop in share prices. |
The net effect is that markets clamour for more stimulus while at the same time losing faith it will actually work. | The net effect is that markets clamour for more stimulus while at the same time losing faith it will actually work. |
10.53am AEST01:53 | 10.53am AEST01:53 |
It was too late for European bourses though which had struggled on the back of another lacklustre response from the Chinese markets to yet more stimulus – rate cuts and a loosening of reserve requirements – from the People’s Bank of China on Tuesday. | It was too late for European bourses though which had struggled on the back of another lacklustre response from the Chinese markets to yet more stimulus – rate cuts and a loosening of reserve requirements – from the People’s Bank of China on Tuesday. |
The FTSE was down 102 points to 5,979 on Wednesday. It has now fallen for 11 of the last 12 days (on Tuesday it jumped by 188 points), and is currently 15% off its record high. | The FTSE was down 102 points to 5,979 on Wednesday. It has now fallen for 11 of the last 12 days (on Tuesday it jumped by 188 points), and is currently 15% off its record high. |
Germany’s DAX and Spain’s IBEX both lost 1.3%, and the French CAC dropped 1.4%. | Germany’s DAX and Spain’s IBEX both lost 1.3%, and the French CAC dropped 1.4%. |
10.49am AEST01:49 | 10.49am AEST01:49 |
The key plus-point for the American market seemed to be comments from New York Fed president Bill Dudley who said on Wednesday that a September interest rate rise was now “less compelling” than it had been just a few weeks ago. | The key plus-point for the American market seemed to be comments from New York Fed president Bill Dudley who said on Wednesday that a September interest rate rise was now “less compelling” than it had been just a few weeks ago. |
The decision to begin the normalisation process at the September FOMC [federal open market committee] meeting seems less compelling to me than it was a few weeks ago | The decision to begin the normalisation process at the September FOMC [federal open market committee] meeting seems less compelling to me than it was a few weeks ago |
He was also keen to play down any systemic risk from the China turbulence. | He was also keen to play down any systemic risk from the China turbulence. |
The stock market has to move a lot – and stay there – to have implications for the US economy. What we’re seeing is not a US problem. This is very different from the financial crisis.” | The stock market has to move a lot – and stay there – to have implications for the US economy. What we’re seeing is not a US problem. This is very different from the financial crisis.” |
And with the prospect of more cheap money sloshing around the system for a bit longer than everyone had begin to expect, traders went away happy and the market surged. | And with the prospect of more cheap money sloshing around the system for a bit longer than everyone had begin to expect, traders went away happy and the market surged. |
Updated at 11.01am AEST | Updated at 11.01am AEST |
10.42am AEST01:42 | 10.42am AEST01:42 |
The ASX200 in Australia is up smartly again this morning after a good day on Wednesday saw it recoup a lot of the losses from earlier in the week, rising 35.5 points, or 0.69%, at 5,172.8 points. | The ASX200 in Australia is up smartly again this morning after a good day on Wednesday saw it recoup a lot of the losses from earlier in the week, rising 35.5 points, or 0.69%, at 5,172.8 points. |
This is this morning’s chart, where it resembles roughly half of Thunderbirds 3. | This is this morning’s chart, where it resembles roughly half of Thunderbirds 3. |
10.34am AEST01:34 | 10.34am AEST01:34 |
Good morning | Good morning |
Welcome to the Asia leg of the markets live blog. We’ve all had time to pause and reflect in the time zone but now things are under way again and the Australian and Japanese markets are up strongly following a huge 619-point surge on Wall Street on Wednesday. | Welcome to the Asia leg of the markets live blog. We’ve all had time to pause and reflect in the time zone but now things are under way again and the Australian and Japanese markets are up strongly following a huge 619-point surge on Wall Street on Wednesday. |
For full details of how it played out yesterday, here’s the blog. | For full details of how it played out yesterday, here’s the blog. |
More of that in a moment – especially some interesting comments from a Federal Reserve rates setter – but here are the main scores on the doors this morning. | More of that in a moment – especially some interesting comments from a Federal Reserve rates setter – but here are the main scores on the doors this morning. |
Nikkei +1.4% | Nikkei +1.4% |
ASX200 +1.3% | ASX200 +1.3% |
Kospi +0.56% | Kospi +0.56% |
The yen is also down on the dollar while the Aussie dollar is currently buying US71.24c. | The yen is also down on the dollar while the Aussie dollar is currently buying US71.24c. |
Updated at 10.37am AEST | Updated at 10.37am AEST |