Renminbi hits five-year low – China’s entire equity market was suspended within half an hour of trading overnight as the region’s blue chip index fell 7%, bringing total losses to 12% in the first four days of 2016. In a repeat of Monday’s suspension, a circuit breaker introduced to curb volatility after last August’s Black Monday sell-off kicked in after the CSI 300 dropped by 7%, suspending trading for the whole session after an initial 15-minute hiatus. China’s Renminbi also dropped 0.6%, hitting a five-year low, in morning trading to 6.5928 against the US dollar after falling by a similar amount on Wednesday….
“Long-term investors should sit tight. The Chinese market falls are also hurting global markets which look painful in the short term but are beginning to present buying opportunities.”
In the UK, the FTSE 100 was once again down by 1% when it closed yesterday, trading at around 6,073 points, while in the US tech giant Apple saw shares fall to 2% their lowest level since October 2014…
[Source: Investment Week - Daniel Flynn - January 7, 2016]
