A battered start to the New Year

THE start of a new year often brings hope that things will be better. Unfortunately, the first five trading days of 2016 have seen a continuation of where we ended last year: a weaker SGD, lower FTSE STI, and higher domestic interest rates. The continued depreciation of the CNY and sharply lower oil prices continue to haunt us. It's a new year - but with the same old problems.

The depreciation of the Chinese yuan (-1.5 per cent) against the US dollar has led to questions over the government's intentions for the currency, and is raising concerns of greater regional currency volatility and global deflationary pressure. The USD/CNY and USD/CNH rose to five-year highs this week and comes on the back of a disappointing Caixin manufacturing PMI rea…