Overnight the Chinese government cracked down on short-selling, unveiling rules that will make it harder for speculators to profit from hourly price changes. CNBC spoke with two analysts about whether the move is a good one for the Chinese markets long term.
Peter Boockvar, chief market analyst at The Lindsey Group, said that Chinese officials have thrown price discovery out the window and have thus “broken the market.”
“Unfortunately after creating the bubble and responding to the downturn, this is a mess they have gotten themselves into,” he said in an interview with CNBC’s “Power Lunch” on Tuesday. “Their main intention here, I think, is to see the margin debt levels fall to a level they are comfortable with, then they’ll eventually walk away, but they’ve destroyed the market.”
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.