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24 Dec 2014
Shanghai remains in retreat – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team notes that the Shanghai composite remained in year-end profit-taking mode, as it fell another 2% after yesterday’s 3% slump.
Key Quotes
“After a 3% slump overnight, Shanghai Composite remains in year-end profit-taking mode, falling another 2% and testing below the psychological 3,000 level. Financials are again under pressure following CBRC report that November-end non-performing loan ratio rose another 15bps to 1.31%. Brokers were also heavily sold on press reports indicating that some firms have raised margin thresholds on concerns over rising volatility.”
“Nikkei225 returned from holiday break with a catch-up rally, even though USD/JPY has come off its late US-session high of 120.80 to trade in the 120.30s.”
“Fin Min Aso reiterated the govt will proceed with Abenomics policies, but also added the upcoming budget needs to be mindful of Japan's fiscal target. Automakers Nissan, Mitsubishi, and Honda reported double-digit y/y declines in domestic output, reflecting the high base-effect of strong demand last year going into the April sales tax hike.”
“Separately, local press also reported that Honda's domestic production would fall short of the company's target by about 15%.”
Key Quotes
“After a 3% slump overnight, Shanghai Composite remains in year-end profit-taking mode, falling another 2% and testing below the psychological 3,000 level. Financials are again under pressure following CBRC report that November-end non-performing loan ratio rose another 15bps to 1.31%. Brokers were also heavily sold on press reports indicating that some firms have raised margin thresholds on concerns over rising volatility.”
“Nikkei225 returned from holiday break with a catch-up rally, even though USD/JPY has come off its late US-session high of 120.80 to trade in the 120.30s.”
“Fin Min Aso reiterated the govt will proceed with Abenomics policies, but also added the upcoming budget needs to be mindful of Japan's fiscal target. Automakers Nissan, Mitsubishi, and Honda reported double-digit y/y declines in domestic output, reflecting the high base-effect of strong demand last year going into the April sales tax hike.”
“Separately, local press also reported that Honda's domestic production would fall short of the company's target by about 15%.”