IMF Admits Chinese Yuan as a Reserve Currency
In overseas trading, world markets were just as volatile. Asia had a down day, with both Japan’s Nikkei and Hong Kong’s Hang Seng indices losing ground. The Nikkei dropped by 136 while the Hang Seng fell by 70 points.
Computer Sciences Corp (CSC) Loses 50%In just two days of trading, Computer Sciences Corp (CSC) dropped by over 50%. The plummeting share prices were caused by a spinoff of some of the company’s government contracts into a separate business. Computer Sciences Corp is an information technology firm that has been awarded several government contracts.
Today, the company lost 20% of its share price. This follows on the heels of last Friday, where it dropped another 30%. The news is bad for Computer Sciences Corp in the short term, but many analysts expect the stock to pick itself back up after a few months and potentially regain its value by next year.
IMF Admits Chinese Yuan as a Reserve CurrencyComing on the heels of some major currency reforms in China, the IMF today admitted that it would be holding the yuan in its Special Drawing Rights basket. The changes, which take effect next October, should help to strengthen China’s currency versus the US dollar. In trading today, the market had 6.40 yuan equivalent to a US dollar.
The move could be a good one for exporters in the US sending luxury goods back to China. That’s the case for a lot of electronics and toy manufacturers -- notably Apple (AAPL) and Mattel (MAT) -- which have had problems with overseas demand in the previous quarters.
Technology Services Sector Up 13% Over 90 DaysThe Technology Services sector has pulled ahead to become the leading growth sector over the past three months. It’s followed by Retail Trade and Consumer Non-Durables -- two sectors experiencing seasonal growth right now -- but neither one could keep pace with Tech’s sudden growth.
Published on Nov 30, 2015By Aaron Phillips