1/21/2016, 7:55 AM (Source: TeleTrader)
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China fails to calm markets with cash

Stocks in Shanghai and Hong Kong reversed to losses on Thursday, even though the People's Bank of China had stepped in to boost general liquidity with a massive injection of 400 billion yuan ($60.83 billion). At the same time it is signalling capital controls measures are underway to prevent big outflows. Another concern for the policymakers in the most populous country is the shadow banking system, which provides infrastructure for illegal currency transaction. Oil futures edged down and the Australian dollar was dropping against all main peers.

Gains in the Tokyo Stock Exchange started to wear out in mid-session and the trend drew the Nikkei 225 to close 2.43% under, little above the 16,000 points threshold, after weaker manufacturing data. The Australian S&P/ASX settled 0.46% above water, after New Zealand's main gauge finished 0.54% in the red. The island nation's dollar suffered a steep slide yesterday with concerns about prospects of deflation. The Australian dollar was about half percent down versus major currencies, including the neighbour kiwi. The namesake monetary unit of Canada, also a major commodities exporter, retreated across the board.  

The Hang Seng lost 1.26%, Shanghai's broad indicator slumped 2.39% (both 7:48 a.m. CET), and the South Korean Kospi fell 0.27% during the session. WTI oil dropped 0.81% to $28.1 per barrel (7:38 a.m. CET) and Brent lost 0.32% to $27.7 per barrel (7:42 a.m. CET). 

Baha Breaking News (BBN) / IT