Strategy/Key Drivers: Nearing breakdown of supportPrice capped by 50-EMA and MACD below 0 (centre line)RSI shifting from neutral to bearish . Trade Levels: Current: 109.25Stop: 109.75Target: 107.75
Gold was down on Tuesday morning in Asia. Investors were taking a risk-averse stance, however, ahead of the U.S. Federal Reserve’s policy decision and China Evergrande Group’s ongoing debt crisis.
The dollar was down on Tuesday morning in Asia and the offshore yuan remained near an almost one-month low. All eyes are now on whether China Evergrande Group (HK:3333) will default on its upcoming due payments.
Oil prices rose on Tuesday as analysts pointed to signs of U.S. supply tightness, ending days of losses as global markets remain haunted by the potential impact on China’s economy of a crisis at heavily indebted property group China Evergrande.
The S&P 500 suffered its biggest slump since May, amid fears a debt crisis at China Evergrande Group could spark credit crunch in China’s crucial real estate sector, leading to a potential economic crisis in the world’s second largest economy.
Global stock markets grappled with contagion fears on Tuesday, sparked by troubles at China Evergrande as growing risks the property giant could default on its massive debt pile prompted investors to flee riskier assets.