China has announced tougher rules on trading stock index futures and foreign exchange derivatives as it seeks to steady jittery markets whose weakness has raised concern over the health of the world's second-largest economy.
The global stock market rout of the past week was sparked by concerns over a possible interest rate rise by the U.S. Federal Reserve and not by the devaluation of China's yuan currency, a senior Chinese central bank official told Reuters on Thursday.
The dollar jumped one percent against a basket of major currencies on Tuesday and recovered from seven-month lows against the safe-haven yen and euro as riskier assets got a boost from an interest rate cut by the Chinese central bank.
China's gold demand this year is expected to at least hold steady with last year at just under 1,000 tonnes and will not likely be dented by this week's currency devaluation, the World Gold Council (WGC) said.
A surprise move out of the People's Bank of China (PBOC) to devalue its currency has sent some shock waves throughout the market as the world’s second largest economy responds to weak export data over the weekend.
Since July, every time crude oil gets a bid there is some news to squash the rally. This time the People's Bank of China, in a surprise move, devalued its currency causing its biggest one day sell-off in almost 20 years.