FX Daily Update: Stock Markets Are Seeing Red
The National Bank of Canada | Jul 27, 2015 09:30AM ET
Stocks Markets are Seeing Red
Chinese stocks, which ended the session today down by 8.5%, are pulling other world stock markets down with them. In North America, futures for both the S&P 500 and the TSX are pointing to a lower opening by 0.5% below Friday’s closing level. The slide seems to have been triggered by rumours in China alleging that the government is reducing its stock purchases and by the same token its support for the Chinese stock market. Despite the control measures implemented in the past few weeks, Chinese investors are still quite nervous. Curiously enough, the effects of this have not yet been felt on currency markets, as the greenback, usually seen as a safe haven, is currently losing some ground against most of its peers this morning.
The main economic indicator of the day will be U.S. Durable Goods Orders (June), to be released at 8:30 a.m. Forecasts are for a 3.2% increase, contrasting with the -1.8% recorded last month. This could help the U.S. dollar recover the ground it has lost overnight.
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