Yuan falls because of China’s rule change; The US dollar rises

(Oct 12): The offshore yuan fell in early trading after Chinese politicians acted to restrict its strength by easing gambling. Asian stocks appeared poised for an uneven start.

The yuan was down about 0.6% against the dollar, which was up against major pairs. The Australian dollar also fell when the currency markets opened. S&P 500 futures reversed shortly after the benchmark ended higher last week, with some traders betting that lawmakers are getting closer to a deal on stimulus. The contracts in Japan and Australia were flat. Crude oil declined and gold was stable.

China’s daily currency peg will be closely watched on Monday after the central bank removed rules that made betting against the yuan more expensive. Meanwhile, the US stimulus saga continues, with President Donald Trump and House Speaker Nancy Pelosi blaming each other for the lack of progress on a deal. Attention will soon turn to the earnings season on Wall Street with the big banks due to the report’s results.

“Markets that once feared a Democratic sweep now appear to be waiting for Democrats to take control of the Senate, with Biden’s voting tracks fueling optimism for further stimulus,” said Ben Emons, Medley’s managing director of global macro strategy. Global Advisors. .

Trump was cleared by his doctor and is no longer considered a coronavirus transmission risk to others, as he meets the criteria to end self-isolation, said his doctor Sean Conley. The virus continued its relentless spread in Europe, with France posting another daily infection record and Germany reporting the most Covid-related deaths since May.

Here are some key events to come:

• Monday is the Columbus Day holiday in the US.
• UK Prime Minister Boris Johnson has set a Thursday deadline to define the outline of a trade deal with the EU.
• Earnings from JPMorgan Chase & Co., Citigroup Inc., Goldman Sachs Group Inc. and Johnson & Johnson are due this week.
• IMF / World Bank meetings continue.

These are the main movements in the markets:

Stocks

• S&P 500 futures were down 0.2% at 7:01 am in Tokyo. The indicator rose 0.9% on Friday.
• Japan’s Nikkei 225 futures changed little on Friday.
• Hang Seng index futures rose 0.7% on Friday.
• Australian S & P / ASX 200 Index futures ended Friday unchanged.

Coins

• The offshore yuan fell 0.6% to 6.7280 per dollar.
• The yen fell 0.1% to 105.72 per dollar.
• The euro bought $ 1.1819, down 0.1%.
• The Australian dollar fell 0.1% to 72.29 cents.

Captivity

• The 10-year Treasury yield ended last week at 0.77%.

Raw Materials

• West Texas Intermediate crude fell 0.8% to $ 40.28 a barrel.
• Gold fell 0.1% to $ 1,927.70 an ounce.