Sino-American tussles over telecom renew, China eyes ‘clear up’ of illegal coal storage

Anil Panchal FXStreet

Early Wednesday, The Guardian came out with the news citing further hardships from the US regulators to China’s telecom companies.

“The decision by the US Federal Communications Commission (FCC) means China Telecom Americas must now discontinue US services within 60 days. China Telecom, the largest Chinese telecommunications company, has had the authorization to provide telecommunications services for nearly 20 years in the United States,” said the news.

The US-China tussles could also be witnessed via US Secretary of State Antony Blinken’s latest comments urging all United Nations (UN) members to support Taiwan's participation.

In addition to the absence of cordial relations with America, Beijing also suffers from real-estate-led financial crisis and energy problems at home.

To solve the first one, the dragon nation asked billionaire Hui Ka Yan to use his wealth to ease off the deepening debt crisis in the property development giant, per Bloomberg. For the second one, the National Development and Reform Commission (NDRC) takes action. “China said it will conduct "clean up and rectification" work on coal storage sites in some coal-producing areas and ban storage sites without approvals in its latest move to address skyrocketing coal prices,” per Reuters.

FX implications

Despite the challenges to risk appetite, S&P 500 Futures print mild gains around the record top amid US stimulus hopes and a good start to the Q3 earnings season. Also portraying the firmer mood in the market is the AUD/USD prices, up 0.23% intraday around 0.7515 by the press time.

Read: Gold Price Forecast: Bearish divergence, rising wedge direct XAU/USD towards $1,740

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD trims gains, reclaims 1.1600 and beyond

Following an earlier drop to yearly lows around 1.1530, EUR/USD now manages to recoup part of the ground lost and reclaim the area above 1.1600 the figure in the latter part of the NA session on Tuesday. Meanwhile, the pair’s marked retracement comes in response to the unabate march norht in the US Dollar, always propped up by the intense flight-to-safety environment amid the deteriorating geopolitical landscape in the Middle East.

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.