Australian banks Australian LNG Australian Shares Commodities Gold Iron ore price

Yuan, Big Coal crater

Tuesday, 15 November 2016

Amazing stuff. The CNY fixing today is another new low and falls are accelerating:

Yet this enormously deflationary event is being met by wider markets pricing inflation higher worldwide. Markets are focused on the short term as Chinese speculators continue to hedge by buying USD-linked local commodities like iron ore and coal, which are again both up 1% and 2.5% at the Dalian open, and on US stimulus hopes that are really going to do nothing for dirt.

We might also take pause to wonder what a crashing yuan will do to Donald Trump’s Chinese agenda. It’s not going to make him more friendly now is it?

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.