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Markets reeling, recovering

US market futures were looking positive at the time of writing after China took steps to stabilise the yuan today.
Markets reeling, recovering Markets reeling, recovering Markets reeling, recovering Markets reeling, recovering Markets reeling, recovering

Iron ore miner Fortescue’s Solomon operations in the Pilbara. Image: FMG

Staff reporter

Markets were reeling yesterday amid increased trade tensions as the yuan fell below the psychologically-significant 7 per US dollar mark in response to further proposed tariffs.

However after the US labelled China a currency manipulator, the People's Bank of China set the daily currency fixing stronger than analysts expected and announced the planned sale of yuan-dominated bonds in Hong Kong, Bloomberg reported.

The spot gold price is higher than this point yesterday, despite softening to about US$1,463 an ounce, having risen above $1,474/oz earlier.

The benchmark S&P/ASX200 had slumped more than 2% at the time of writing.

London looked set for a lower opening today as the Brexit headache continues.

Toronto was closed for a public holiday yesterday.

Newmont Goldcorp (NYSE: NEM) closed up about 1.4% in New York yesterday, Glencore (LSE: GLEN) continued to drop in London, closing down about 3%, and BHP (ASX: BHP) was steady in afternoon Australian trade.

Finally, iron ore miner Fortescue Metals Group (ASX: FMG) was up 4.5% at the time of writing after yesterday's slump of about 7%.

The iron ore price has fallen from about $120 per tonne last week to below $100/t, according to MySteel, amid US-China tensions and supply coming back online.

Fortescue is up about 93% year-to-date and CEO Elizabeth Gaines was among the presenters this morning at the annual Diggers and Dealers mining forum in Kalgoorlie.