Wednesday, February 10, 2016

Investors turn to secure haven assets 10 Feb

Amid concerns over slowing China & soft mcx oil prices, investors across markets are buying secure haven assets like sovereign bonds and gold. Since January world wide equity markets have shed $7 trillion in value — equivalent to the chinese total market capitalisation. With this, more than half of the most liquid markets of equity have officially entered into a bear stage.

After the rout in growing markets, the declining health of companies and banks in developed markets are now making investors nervous this time. The alarming quarterly results of Credit Suisse & the Deutsche Bank have sparked concerns regarding the health of the industry. Post results, the stock of Credit Suisse reached its lowest level since 1991; large European banks have lost around one-fifth of their market value.

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