Global equity markets are sharply lower dragging other asset classes with them. JPY has benefited from the risk off mode and pushed USDJPY down to 118.70, its lowest since October. European stock markets are diving deep into red territory, following earlier Asian Losses caused by concerns over the latest disappointing Chinese data. German DAX is trading -4% while Dow Jones is set for a 300 point dive as China concerns resume. To add to the Chinese drama, tensions between Iran and Saudi Arabia as well as a big Earthquake in India are also souring the taste of how 2016 has started.
On a positive note, GOLD (+1.39%) traders have enjoyed solid and fast gains, as the yellow metal benefited from the above developments and reached 1078 from 1062 on market open. OIL prices have also surged 3% from geopolitical tensions, however gave back its gains based on the Chinese fears later on. As the week started, expectation was for NFP and FOMC minutes to be the focus of the week, next to oil prices, however the Black Swan Called China is now joining the equation, which can contribute towards a result of great unpredictability.
Trading quote of the day: Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected. George Soros
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