Chinese market rebound after the suspension of the circuit breaker and the announcement of the PBOC quote 0.5 percent higher for yuan Friday compared with the previous day. This seems to stir investors’ appetite to invest again in Chinese equities. With futures on S&P500 and DAX30 opening on positive territory looks like an end on 8-straight days of markets downfall.
After reaching as low as $32.50 yesterday morning, Brent Oil started picking up and is currently trading at $34.60 a barrel. With no major fundamental news and with the oversupply in the market, investors believe that the rebound in the equity market is a sign that business prospect in China will improve. Thus China imports of oil will not decline.
For gold looks like an end of the small rally that started at the beginning of the week, when poor data came from the Chinese manufacturing sector. Trading currently at 1100.37 gold seems to start a retracement after hitting a resistance line at 1112.28 where it opened.
With investors more confident in the equity markets, the dollar started to appreciate against other currencies. Also, the Australian dollar is appreciating against the US dollar, as the Australian economy is highly dependent on the commodities exports to China.