24 Jan 2014
True risk-off Thur as panic selling hits EMs
FXstreet.com (Bali) - Stocks down the hill, gold rallies, risk-off currencies looking up and bond yields falling off a cliff, that is the picture Thursday leaves behind, as the slowdown in China HSBC PMI causes concern among traders.
To sum up what has been a spectacular wild Thursday, we had all-time record lows being posted in many emerging market currencies such as the Turkish Lira, the Argentinian Peso or the Venezuelan currency.
Meanwhile, the Swiss Franc and Japanese Yen were back in fashion, both gaining big vs the USD, recording largest 1-day gains in months after 1%+ appreciation. The US index fell by 0.7% in what represents the largest drop in 3 months.
In the Nikkei 225 -3.75%, the largest drop in 7 months was registered, with futures down 1.5%. The Dow saw falls of -1.3%, largest in 5 months. 10Y Treasury yields came under pressure by losing the 2.8% handle, Gold saw its biggest 1-day gain in over 3 months after +2.3%, while VIX recorded a big jump.
To sum up what has been a spectacular wild Thursday, we had all-time record lows being posted in many emerging market currencies such as the Turkish Lira, the Argentinian Peso or the Venezuelan currency.
Meanwhile, the Swiss Franc and Japanese Yen were back in fashion, both gaining big vs the USD, recording largest 1-day gains in months after 1%+ appreciation. The US index fell by 0.7% in what represents the largest drop in 3 months.
In the Nikkei 225 -3.75%, the largest drop in 7 months was registered, with futures down 1.5%. The Dow saw falls of -1.3%, largest in 5 months. 10Y Treasury yields came under pressure by losing the 2.8% handle, Gold saw its biggest 1-day gain in over 3 months after +2.3%, while VIX recorded a big jump.