Emerging stocks drop with yuan on China PMI ; Aussie falls
Bareksa • 23 Apr 2014
Workers assemble and package mechanical pencils at the A.W. Faber-Castell (Guangzhou) Stationery Co - (Bloomberg/Brent Lewin)
A slowdown in China raises more uncertainty that would lead to less funds flow
Bloomberg - Emerging-market stocks fell for a third day and the yuan touched a 16-month low after a factory report signaled continuing weakness in China’s economy. Australia’s dollar fell and bonds rallied after inflation unexpectedly slowed.
The MSCI Emerging Markets Index slid 0.3 percent by 8:14 a.m. in London, led by a 1.2 percent slide in Hong Kong’s Hang Seng China Enterprises Index. The Stoxx Europe 600 Index slid 0.2 percent while Standard & Poor’s 500 Index futures were little changed. China’s yuan fell 0.1 percent. The Aussie dropped 0.9 percent versus the greenback and 10-year government-bond yields swung the most in a month as slower inflation dimmed prospects for rate increases. Two-year U.S. Treasuries slumped.