LexisNexis(TM) Academic - Document
LexisNexis(TM) Academic - DocumentCopyright 2005 The Financial Times Limited
Financial Times (London, England)
July 27, 2005 Wednesday
London Edition 1
SECTION: FT MARKETS; Pg. 44
LENGTH: 391 words
HEADLINE: No further currency moves, says China GLOBAL OVERVIEW
BYLINE: By DAVE SHELLOCK
BODY:
The renminbi stayed high on the agenda for financial markets yesterday after China damped speculation that the currency would be allowed to appreciate further in the months to come.
In a statement on its website, the People's Bank of China said media reports describing last week's revaluation as an "initial adjustment" were incorrect.
"A revaluation of the renminbi by 2 per cent, effective in the beginning of the exchange rate regime reform, does not in the least imply an initial move that warrants further actions in the future," the PBC said.
The comments helped drive the dollar back up to near its pre-revaluation level against the Japanese yen. The yen is seen as one of the main beneficiaries of the Chinese move because a stronger renminbi would be likely to help other Asian currencies to rise, boosting Japanese competitiveness.
The dollar also moved higher against the euro but pared its advance after the release of unexpectedly weak US consumer confidence data.
The figures contrasted with a stronger-than-forecast survey of German business confidence from the Ifo economic institute.
Other data released yesterday showed a sharp improvement in Italian business confidence this month and a surge in French housing starts in the second quarter.
"Euroland may finally be beginning to emerge from a drawn-out period of weakness," said Gabriel Stein at Lombard Street Research. "This should be good for equities."
But Tom Levinson at ING Financial Markets noted that while the rise in the Ifo index was "encouraging", the measure remained at historically weak levels.
European equities put in a mildly positive performance, with the FTSEurofirst 300 index inching up to a fresh three-year high of 1,170.91.
The mood was helped by strong results from French software group Dassault Systemes and Spanish bank BBVA.
But Wall Street was mixed as the weak confidence data offset mostly positive earnings reports. In afternoon trade, the Dow Jones Industrial Average was flat, while the S&P 500 gaineed 0.3 pe rcent and the Nasdaq Composite rose 0.5 per cent.
Asian stocks also lacked a clear direction, with Tokyo and Hong Kong edging lower, but Jakarta hitting an all-time high and Seoul closing at a fresh 10-year peak.
The oil markets had a quiet session as investors remained wary about today's US inventories figures and the threat of hurricanes.
LOAD-DATE: July 27, 2005
Financial Times (London, England)
July 27, 2005 Wednesday
London Edition 1
SECTION: FT MARKETS; Pg. 44
LENGTH: 391 words
HEADLINE: No further currency moves, says China GLOBAL OVERVIEW
BYLINE: By DAVE SHELLOCK
BODY:
The renminbi stayed high on the agenda for financial markets yesterday after China damped speculation that the currency would be allowed to appreciate further in the months to come.
In a statement on its website, the People's Bank of China said media reports describing last week's revaluation as an "initial adjustment" were incorrect.
"A revaluation of the renminbi by 2 per cent, effective in the beginning of the exchange rate regime reform, does not in the least imply an initial move that warrants further actions in the future," the PBC said.
The comments helped drive the dollar back up to near its pre-revaluation level against the Japanese yen. The yen is seen as one of the main beneficiaries of the Chinese move because a stronger renminbi would be likely to help other Asian currencies to rise, boosting Japanese competitiveness.
The dollar also moved higher against the euro but pared its advance after the release of unexpectedly weak US consumer confidence data.
The figures contrasted with a stronger-than-forecast survey of German business confidence from the Ifo economic institute.
Other data released yesterday showed a sharp improvement in Italian business confidence this month and a surge in French housing starts in the second quarter.
"Euroland may finally be beginning to emerge from a drawn-out period of weakness," said Gabriel Stein at Lombard Street Research. "This should be good for equities."
But Tom Levinson at ING Financial Markets noted that while the rise in the Ifo index was "encouraging", the measure remained at historically weak levels.
European equities put in a mildly positive performance, with the FTSEurofirst 300 index inching up to a fresh three-year high of 1,170.91.
The mood was helped by strong results from French software group Dassault Systemes and Spanish bank BBVA.
But Wall Street was mixed as the weak confidence data offset mostly positive earnings reports. In afternoon trade, the Dow Jones Industrial Average was flat, while the S&P 500 gaineed 0.3 pe rcent and the Nasdaq Composite rose 0.5 per cent.
Asian stocks also lacked a clear direction, with Tokyo and Hong Kong edging lower, but Jakarta hitting an all-time high and Seoul closing at a fresh 10-year peak.
The oil markets had a quiet session as investors remained wary about today's US inventories figures and the threat of hurricanes.
LOAD-DATE: July 27, 2005
posted by Eastlaw at Wednesday, July 27, 2005
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