Pound falls sharply as Boris Johnson prompts hard Brexit fears – as it happened
Central bank blames herd effect as investors count cost of outbreak
Chinese stock markets plunged on Monday in a delayed investor reaction to the coronavirus outbreak that has seen increasing numbers of confirmed cases.
Shares on the Shanghai stock exchange composite index fell by 7.7% to a one-year low, while the CSI 300 index, which tracks the biggest shares in both Shanghai and Shenzhen, fell by 7.9%. Japan’s Topix index fell by 0.7%.
While the severity of the onshore sell-off will dominate news headlines on Monday, the flat trade in offshore China equities (Hang Seng –0.1%) backs our thesis that today represents more of a catch-up. If anything, we think the magnitude of the sell-off appears less severe than market bear cases ahead of the open.
PBoC: China Stock Plunge Today Is Panic Triggered By Herd Effect
China’s authorities have demonstrated their determination to deal with the economic implications of the coronavirus by cutting the key reverse repo rates by 10 basis points [o.1 percentage points] as soon as markets have reopened after the New Year. The move may help sentiment but there is still no urgency to rebuild risk exposure as the virus continues to spread.Continue reading...