Morning Briefing: Gold continues gains as investors seek safe havens

Morning Briefing: Gold continues gains as investors seek safe havens

Morning Briefing: Gold continues gains as investors seek safe havens Gold continues gains as investors seek safe havens
Gold is the main success story right now as concern over equities and bonds supersedes the ongoing spectre of an increase in US interest rates, which would typically mean gold prices dropping.

Equity markets are broadly lower Wednesday with Asian indexes, generally less exposed to the impact from Brexit, suffering due to lower leads from Wall Street and declining oil prices. Only Shanghai closed higher, although choppy trade meant it could just as easily have closed lower.

European markets are down too as the British pound hit a new 31-year low amid Brexit fears. Italy’s banks are the focus for many though with some lenders warned by the ECB that they must cut their exposure from bad loans.

Wall Street and Toronto are expected to open lower.
 
  Latest 1 month ago 1 year ago
 
North America (previous session)
US Dow Jones 17,840.62 (-0.61 per cent) -0.44 per cent +0.89 per cent
TSX Composite 14,219.57 (-0.28 per cent) -0.40 per cent -2.56 per cent
 
Europe (at 4.30am ET)
UK FTSE 6,548.61 (+0.05 per cent) +4.39 per cent +0.20 per cent
German DAX 9,447.67 (-0.89 per cent) -6.65 per cent -13.25 per cent
 
Asia (at close)
China CSI 300 3,216.80 (+0.29 per cent) +1.20 per cent -19.55 per cent
Japan Nikkei 15,378.99 (-1.85 per cent) -7.24 per cent -23.53 per cent
 
Other Data (at 4.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
47.83
(-0.27 per cent)
46.49
(-0.24 per cent)
1372.40
(+1.01 per cent)
U$0.7687
 
Aus. Dollar
U$0.7441

 
The yuan is falling again
While the pound may be the talk of the currency markets with a new 31-year low this morning, there is also a renewed slide for China’s pressured currency.

The yuan is down 1.3 per cent against the US dollar since the Brexit vote, small compared to the 12 per cent drop for the pound, but CNN reports that China’s currency suffered its largest ever quarterly loss against the dollar and is trading at a near 6-year low. Analysts predict more weakening to come.