the weaker the yuan the stronger the $, the stronger the $ the more the US interest rate will rise, the higher the interest rise the higher the Shale 2 bankruptcies , the higher the bankruptcies the higher the chances of putting Sub-prime crash to shame....
How China's Stock Market Crash Influenced Today's Yuan Devaluation The Chinese central bank would never admit it, but China's stock market crash surely weighed on its decision today to devalue the yuan. The news had an immediate impact, with the yuan falling nearly 2% against the U.S. dollar. It marked the biggest one-day plunge since 1994.
Because of the way the yuan is controlled by the People's Bank of China (PBOC), the devaluation of the yuan wasn't achieved by lowering interest rates – the way most central banks would do it.
Ok good question. In the end it comes down to Celsius much maligned market makers.
Market makers have a duty to buy and sell shares. Not usually required for massive volume shares like lloyds.but in these low volume shares they are essential.
Or when you come to buy there maybe no one selling at the same time. So if you want to buy a handful then market makers can meet that demand. If you want to buy 2 million it might take some time to fill that order pushing up the price as they try to pick up enough shares to cover it.
So the buys today may not have moved the price much as the market makers may already have more than enough shares ready to offload at that price.
When the market makers run short then the price will go up on smaller buys.
It's far more complex than that but I'm sure there are more qualified people out there to explain it in full.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.