The dollar weakened as Chinese monetary stimulus boosted commodity markets and emerging market currencies, with the effect of the stimulus on global currencies being uncertain. The US continues to show signs of a slowdown, prompting investors to shift to a sell-dollar mindset. Metals markets rallied, and emerging market commodity exporters saw their currencies rise.
Meanwhile, British online property portal Rightmove rejected a £6.1bn takeover offer from Rupert Murdoch’s REA Group, stating that it undervalued the company. Chinese stocks extended their rally for a second day, driven by Beijing’s stimulus measures, with the People’s Bank of China cutting cash reserve requirements and interest rates to support the economy. However, some analysts are cautious about the long-term impact of these stimulus measures.
In other news, the agenda includes the Sweden Riskbank interest rate decision and US MBA Mortgage applications and New Home sales data for August. Overall, global markets are reacting to Chinese stimulus measures and the ongoing developments in various sectors.
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