Overseas Trading: PBOC Fails to Rescue Sinking China Stocks

The People's Bank of China (PBOC) injected 360 million yuan into money markets, but it couldn't stop the bleeding

Jan 26, 2016 at 8:36 AM
facebook twitter linkedin


An overnight sell-off in crude took a heavy toll on Asian stocks, exacerbated by uncertainty ahead of the Fed's two-day policy meeting, which kicks off today. By day's end, China's Shanghai Composite had plummeted 6.4% and given back Monday's gains, despite the People's Bank of China (PBoC) injecting 360 million yuan into money markets. This was index's biggest single-day percentage loss since Jan. 7 -- the day before regulators abandoned the "circuit breaker" mechanism.

Elsewhere, a two-day hot streak was halted on Japan's Nikkei, with auto parts makers helping lead the index to a 2.4% loss, while South Korea's Kospi fell 1.2% on downbeat gross domestic product (GDP) data. Rounding things out, Hong Kong's Hang Seng plunged 2.5%.

A rebound in the price of oil is helping European markets come back from heavier losses earlier, with mining stocks muscling into positive territory. At last check, London's FTSE 100 and France's CAC 40 are off 0.4% and 0.1%, respectively, while the German DAX has edged 0.1% higher.


160126overseas2

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical  levels, and top economic stories straight to your inbox.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners