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<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>European investors reported a minor confidence boost in November, beating expectations. The Sentix investor confidence index rose to -11.9.</p>
<p>Any negative figure suggests that investors are pessimistic on net, while I positive figure would show bullishness. </p>
<p>Though the figure is still pretty bad, analysts were expecting an increase, up to -13.5. It's the third month in negative territory for the index.</p>

Eurozone Investor Confidence Beats Expectations

Billionaire Gautam <keyword id="76451" type="General" weightage="100" keywordseo="adani" source="Orion">Adani</keyword>'s group on Tuesday said it will prepay USD 130 million of debt as it looks to boost investor confidence post being targeted by a US short-seller. <keyword id="895682" type="General" weightage="20" keywordseo="Adani-Ports" source="Orion">Adani Ports</keyword> and <keyword id="6365230" type="General" weightage="50" keywordseo="special-economic-zone" source="Orion">Special Economic Zone</keyword>, the ports company of the <keyword id="6367820" type="General" weightage="80" keywordseo="adani-group" source="Orion">Adani Group</keyword>, had last month floated a tender to buy back as much as USD 130 million of its July 2024 bonds and similar amounts in each of the next four as it looked to regain investor confidence by showing that its liquidity position is comfortable. <br /><br /> In a stock exchange filing, APSEZ said an aggregate principal amount of USD 412.7 million was validly tendered. <br /><br /> "Since the principal amount of notes validly tendered and not validly withdrawn on or prior to the early tender date (of May 8) exceeded the maximum acceptance amount of USD 130 million in aggregate principal amount of the outstanding notes, the company will accept such notes for purchase subject to the proration factor of 34.2649 per cent," it said. <br /><br /> Shares of Adani group companies pummelled after <keyword id="9916845" type="General" weightage="50" keywordseo="hindenburg-research" source="Orion">Hindenburg Research</keyword> in a January 24 report accused it of accounting fraud and improper use of offshore tax havens for stock manipulation. <br /><br /> The group has denied all allegations. <br /><br /> APSEZ said the buyback programme for its 3.375 per cent 2024 maturity dollar-denominated bonds closed on May 8. <br /><br /> "The purpose of the tender offer is to partly prepay the company's near-term debt maturities and to convey the comfortable liquidity position," it had said in a statement last month. <br /><br /> The company had engaged Barclays Bank, DBS Bank, Emirates NBD Bank PJSC, <keyword id="4370138" type="General" weightage="50" keywordseo="first-abu-dhabi-bank" source="Orion">First Abu Dhabi Bank</keyword>, PJSC, <keyword id="17366045" type="General" weightage="50" keywordseo="mufg-securities-asia-singapore-branch" source="Orion">MUFG Securities Asia Singapore Branch</keyword>, <keyword id="616606" type="General" weightage="50" keywordseo="smbc-nikko-securities" source="Orion">SMBC Nikko Securities</keyword> (Hong Kong) and <keyword id="127691" type="General" weightage="50" keywordseo="standard-chartered-bank" source="Orion">Standard Chartered Bank</keyword> to serve as dealer managers for the offer. <br /><br /> In addition to the principal amount, the company will pay accrued interest, in respect of any notes purchased in the tender offer from, and including, the last interest payment date.<br /><br /><strong>SEE ALSO:<br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/possibility-of-rival-bids-for-go-airlines-it-is-a-hypothetical-question-says-ceo-kaushik-khona/articleshow/100100179.cms">Possibility of rival bids for Go Airlines? It is a hypothetical question: says CEO Kaushik Khona</a><br /></strong><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/need-to-step-up-quickly-to-install-refining-capacity-anand-mahindra-on-lithium-reserves-discovery-in-rajasthan/articleshow/100099312.cms"><strong>Need to step up quickly to install refining capacity: Anand Mahindra on lithium reserves discovery in Rajasthan</strong></a><br />

Adani group to prepay USD 130 million debt to boost investor confidence

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>German investor confidence just smashed expectations.</p><p>The ZEW index measures both the current situation and the general economic sentiment of investors, and any positive figure suggests confidence on net - the higher the better. </p><p>The current situation figure blew the doors off, rising to 70.2, from 55.1 last month. That's the highest figure since 2011, and analysts were only expecting the index to improve to 56.</p><p>The economic sentiment figure was a little weaker - it dipped slightly from March's 54.8 to 53.3, bucking expectations for a slight improvement. </p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/game-of-thrones-economics-2015-3">'Game of Thrones': The Iron Throne is a terrible investment</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="tvNncydDrkw0Adz4yS0Vsg8DPK1cte-i" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

German investor confidence just surged to the highest level in four years

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>Investor confidence in the eurozone just smashed expectations.</p><p>The Sentix confidence index, which polls investors on the state of the currency union, spiked to 18.6 for March, well above the 15 score that was expected, and up from 12.4 in February.</p><p>It's not only solidly in positive territory, but up to its highest level since at 2007.</p><p>That's on the back of an increasingly positive outlook for Europe. The bloc's economy grew by just 0.3% in the final quarter of 2014, but that was more than analysts expected.</p><p>Since then, we've seen Spanish and German retail sales figures grow at the fastest pace in a decade, just as the European Central Bank's QE programme gets underway. Private lending is back in growth territory (or at least is no longer shrinking), and the <a href="http://uk.businessinsider.com/european-central-bank-ecb-press-conference-march-2015-2015-3">ECB also significantly hiked its growth forecast for this year and next</a>.</p><p>And just this morning, <a href="http://uk.businessinsider.com/investors-have-flooded-out-of-the-us-and-into-european-funds-as-the-economy-heats-up-2015-3">Credit Suisse illustrated that investors are surging into Europe and away from north America</a>, as the bloc's economy recovery becomes increasingly clear. </p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/largest-ice-glacier-calving-filmed-2015-1">This Video Of The Largest Breakage Of Ice From A Glacier Ever Filmed Is Absolutely Frightening</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="NqbHJucjpzcqR3obKs3FqeMQRi8yolxr" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

Investor confidence in the eurozone just smashed to the highest level since 2007

<p><div class="image-container float_right" style="width:400px"><div class="image"></div><p class="source"><a href="http://www.gettyimages.com/detail/news-photo/dancers-perform-during-a-gala-show-to-celebrate-the-90th-news-photo/117587482">Feng Li/Getty Images</a></p></div>Many policies previously approved by the <keyword id="1334" type="COUNTRY" weightage="60" keywordseo="China">China</keyword> Securities Regulatory Commission (CSRC) came into effect in the new year.</p>
<p>These reforms should help increase investor confidence, according to <a href="http://www.cs.com.cn/english/ei/201301/t20130108_3809526.html">China Securities Journal</a>.</p>
<p>Last month Societe Generale's Wei Yao wrote that despite reports that reforms were unlikely after the handover of power, it looked increasingly likely that <a href="http://www.businessinsider.com/xi-jinping-will-reform-china-2012-12">Xi Jinping would reform China. </a></p>
<p>The new policies include:</p>
<ol>
<li><strong>Measures for the supervision and administration of unlisted public companies</strong><strong>[published October 11th 2012].</strong> This is the first law to supervise unlisted public companies i.e. companies that can have unlimited shareholders but are too small to be listed on a stock exchange. It allows shares of unlisted public companies to be "publicly transferred in stock exchanges duly established abiding by the laws", and allows for more than 200 shareholders.</li>
<li><strong><a href="http://www.csrc.gov.cn/pub/csrc_en/newsfacts/release/201212/t20121206_217710.htm">Notice on implementing differentiated income tax scheme on the dividend of listed companies</a> [published November 16th 2012]. </strong>Under this policy the dividends on shares of listed companies through "public offerings or transfers will be assessed at differentiated tax rates based on the lengths of holding periods," according to China Securities Journal. </li>
<li><strong><a href="http://www.csrc.gov.cn/pub/csrc_en/laws/overRule/Announcement/201212/t20121214_219212.htm">Interim provisions on strengthening the supervision over the securities investment consulting business conducted by utilizing “stock recommendation software” </a>[published December 5, 2012]</strong>. This prevents any company or individual without the qualifications to practice securities investment consultancy from using stock recommendation software.</li>
<li><strong><a href="http://www.csrc.gov.cn/pub/csrc_en/newsfacts/release/201212/t20121224_219561.htm">Notice on issues regarding furthering the reform of the fund review regime</a> [published December 13, 2012]. </strong>This involves a change in the fund review process. Companies can now report the number and types of funds based on market demand which shortens the time for fund review. It also launched an online application and review system for fund products on January 1.<strong> </strong></li>
<li><strong><a href="http://www.linklaters.com/Publications/AsiaNews/LinkstoChina/Pages/CSRC-Finalises-Amendments-Corporate-Governance-Rules-Securities-Companies.aspx">Rules for corporate governance of securities companies</a> [published December 14, 2012]. </strong>"A securities company shall have the obligation of good faith for clients, and shall not infringe upon the property right, the right to choose, the right to fair trade, the right to know and other lawful rights and interests of clients," according to China Securities Journal. </li>
<li><a href="http://www.csrc.gov.cn/pub/csrc_en/laws/overRule/Announcement/201301/t20130106_220125.htm"><strong>Guidelines for supervising the application documents and examination procedures for overseas stock issuance and listing by joint stock companies</strong></a><strong> [December 20, 2012].</strong> This makes it easier for domestic companies to issue stocks abroad, and it also allows joint stock companies to independently file applications for share offerings </li>
</ol>
<p>While changes to the capital controls are very welcome, investors should probably heed Yao's warning that the path of rebalancing will be bumpy and while the impact of good reforms is positive for business, consumers and investors, it is "not entirely positive for short- term growth."</p>

6 Chinese Policies Just Came Into Effect And Will Boost Investor Confidence

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>Germany's ZEW index, which measures investor sentiment, just smashed out of negative territory </p>
<p>Analysts had expected the "economic sentiment" part of the index to rise just out of negative territory for November, to 0.5, from -3.6 in October.</p>
<p>In reality, it hit 11.5. Last month was the first in negative territory for nearly two years, but this month's figure has soared well away from zero.</p>
<p>The figures come after Germany's Q3 GDP growth was <a href="http://uk.businessinsider.com/germany-q3-gdp-nov-14-2014-2014-11?r=US">confirmed at a dismal 0.1%</a>, barely avoiding a technical recession.</p>

German Investor Confidence Just Surged Out Of Negative Territory

<ul class="summary-list"><li>Key gauges of Chinese stocks have hit their lowest levels in about 10 months.</li><li>Global funds have withdrawn $3.8 billion this month, despite Beijing's effort to boost markets.</li></ul><p>Beijing's efforts to revive Chinese markets are falling on deaf ears, as traders continue to shed their equity positions.</p><p>Though the country's authorities pledged to invigorate markets at the July Politburo meeting, China's CSI 300 Index, a benchmark of mainland shares, fell Thursday to its lowest level since November. The MSCI China Index has also fallen to its lowest level in about 10 months.</p><p>This is in spite of measures introduced by Beijing to rev up the economy and bring back investors, such as reduced transaction fees on trading and tighter controls on stake sales among leading shareholders. </p><p>But the growth fears that hit China this year have dampened investing sentiment in the country. As Beijing contends with a mounting debt crisis in its property sector, as well as lackluster activity amid consumers and <a href="https://markets.businessinsider.com/news/commodities/copper-prices-slump-economic-growth-profits-real-estate-construction-china-2023-9">manufacturing</a>, traders have been <a href="https://markets.businessinsider.com/news/stocks/china-stock-market-550-billion-investors-doubt-economy-rebound-opening-2023-4">exiting the country</a> for months. </p><p>Added to that are the Federal Reserve's high interest rates, which have made Treasury markets an attractive investing alternative. Wednesday's Fed meeting that signaled rates will remain higher for longer contributed to the Chinese withdrawal.</p><p>Meanwhile, global funds have shed $3.8 billion from onshore Chinese stocks, following a <a href="https://markets.businessinsider.com/news/stocks/chinas-stock-market-reels-from-record-stretch-of-capital-exodus-2023-8">$12 billion selloff in August</a>. </p><p>Trading activity in China has also dropped through September, with the daily average turnover for Shanghai and Shenzhen stocks falling 32% since the first week of the month.</p><p>To lift valuations, Hong Kong-listed firms are increasing share buybacks in the offshore market, while the largest Chinese companies are expected to give out a record 1.5 trillion yuan in dividends this year.</p><p>September's exodus has not been only limited to the equity market, with overall capital outflows from the country jumping to their <a href="https://markets.businessinsider.com/news/stocks/capital-flight-china-economy-fastest-pace-growth-investment-yuan-2023-9?_gl=1*1qa2scv*_ga*MTMxNDIwNDI1Ni4xNjc1Njg3OTU4*_ga_E21CV80ZCZ*MTY5NTMwMTc3MC4yMzMuMS4xNjk1MzA0MDQ5LjYwLjAuMA..">highest pace since 2015</a>.</p>

China's attempts to boost markets and investor confidence have flopped

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0FCI3K6L450&amp;SMLS=1&amp;RW=1635&amp;RH=960#/SearchResult&amp;VBID=2C0FCI3K6L450&amp;SMLS=1&amp;RW=1635&amp;RH=960&amp;POPUPPN=30&amp;POPUPIID=2C0FQE3ZLD3UY">REUTERS/Brendan McDermid</a></span></p></div><p></p></div></div></p><ul><li><strong>Snap reports third-quarter earnings after the markets close on Tuesday.</strong></li><li><strong>The company is popular among millennials, but many aren't optimistic about the company's earnings, according to Robinhood.</strong></li><li><strong><a href="http://markets.businessinsider.com/stock/SNAP-Quote">Watch Snap's stock move in real time here.</a></strong></li></ul><p>Millennials aren't too bullish ahead of <a href="http://markets.businessinsider.com/stock/SNAP-Quote">Snap</a>'s third-quarter earnings report, due out after the bell on Tuesday.</p><p>Investors on the <a href="http://www.robinhood.com">Robinhood</a> platform, which is popular among millennial investors, are buying shares of Snap 2% more than they are selling shares in the week ahead of earnings. That's a big drop from last quarter's report, ahead of which Robinhood investors were buying shares 20% more than they were selling.</p><p>Snap is the ninth most popular stock on Robinhood's platform.</p><p>"<span>Retail investors on Robinhood are losing confidence in Snap ahead of their earnings report today," Sahill Poddar, a data scientist at Robinhood, told Markets Insider.</span></p><p>Wall Street is just as mixed as retail investors. Only nine of the 34 analysts surveyed by Bloomberg rate the company a "buy" while 20 are neutral and five a "sell." Wall Street is expecting an adjusted loss of $0.15 on revenue of $235.5 million.</p><p>Snap shares are up about 2.43% at $15.19 a piece ahead of the results. Snap is still trading about 10% below its initial public offering price of $17.</p><h2><a href="http://markets.businessinsider.com/news/stocks/alwaleed-bin-talal-twitter-us-investments-in-question-after-he-was-arrested-2017-11-1007073239">Read about what happened to Twitter after one of its biggest investors was thrown in jail.</a></h2><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><a href="http://markets.businessinsider.com/stock/SNAP-Quote"></a><p class="source"><span><a href="http://markets.businessinsider.com/stock/SNAP-Quote">Markets Insider</a></span></p></div><p></p></div></div></p>     <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/chipotle-earnings-do-weak-results-spell-doom-for-stock-2017-10">Does Chipotle's disastrous earnings report spell doom for its stock?</a></h3>        <div>                    </div>    </div>

Millennial investors are 'losing confidence' in Snap ahead of earnings

<ul><li><strong><keyword id="178663" type="PERSON" weightage="60" keywordseo="Robert-Shiller">Robert Shiller</keyword> <a href="https://www.nytimes.com/2020/10/23/business/people-fear-a-market-crash-more-than-they-have-in-years.html">said in a New York Times op-ed article on Friday</a> that the coronavirus pandemic and the upcoming election had caused investors to fear a stock-market crash more than they have in years.</strong></li><li><strong>The Nobel-winning economist said several of his stock-market-confidence indexes were demonstrating a low level of <keyword id="384779" type="ORGANIZATION" weightage="60" keywordseo="investor-confidence">investor confidence</keyword> while stock prices were "trading at very high levels."</strong></li><li><strong>"That volatile combination doesn't mean that a crash will occur, but it suggests that the risk of one is relatively high," Shiller said.</strong></li><li><strong>A rise in COVID-19 cases or a chaotic election could trigger a "change in mass psychology" and bring on a <keyword id="560410" type="PERSON" weightage="60" keywordseo="Market-crash">market crash</keyword>, he concluded.</strong></li><li><strong><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</strong></li></ul><p>The Nobel-winning economist Robert Shiller said the coronavirus crisis and the upcoming election had driven investor fears of a major stock-market crash to the highest levels in many years.</p><p>But while investor confidence in the market is low, stock prices are "trading at very high levels," <a href="https://www.nytimes.com/2020/10/23/business/people-fear-a-market-crash-more-than-they-have-in-years.html">he wrote in a New York Times op-ed article on Friday</a>.</p><p>"That volatile combination doesn't mean that a crash will occur, but it suggests that the risk of one is relatively high. This is a time to be careful," the Yale economist said.</p><p>Shiller has developed several stock-market-confidence indexes over his decades-long career. He said many of them were demonstrating that investors are more nervous than ever about the stock market.</p><p>For example, he said his Crash Confidence Index, which tracks how many investors say the probability of a catastrophic market crash in the US in the next six months is less than 10%, hit a record low in August, when just 13% of investors surveyed said they had that level of confidence in the market.</p><p>In September, Shiller said, the reading "was still extremely low."</p><p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/stock-market-crash-expert-warns-financial-implosion-67-percent-plunge-2020-10" target="_blank" rel="noopener">'The road to financial implosion': A notorious market bear says the Fed has set the stage for a 67% stock plunge — and warns of zero-to-negative returns over the next 12 years</a></em></p><p>"In short, an overwhelming majority of investors said there was a greater than 10 percent probability of an imminent crash — really, a remarkable indicator that people are quite worried," Shiller said.</p><p>Shiller said that another one of his indexes, the Valuation Confidence Index, was also near a record low, demonstrating that a large number of investors think the market is too highly priced.</p><p>The economist also said the CAPE ratio, which he helped to develop, suggested that the market looked similarly valued as periods right before the Great Depression and the dot-com bubble burst in the early 2000s.</p><p>But "the low confidence readings and the high stock prices won't, on their own, cause a market crash," Shiller said. "Another dynamic would need to be in effect."</p><p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/stock-picks-to-buy-companies-beat-q3-earnings-expectations-bofa-2020-10" target="_blank" rel="noopener">BANK OF AMERICA: Buy these 11 under-owned stocks ahead of their earnings reports because they're the most likely candidates to beat expectations in the weeks ahead</a></em></p><p>An increase in coronavirus cases or a chaotic election could "shake people up," he said. And any further similarities between the market now and the market before previous crashes could "create a psychological sense of the risk."</p><p>"The decision to invest in the stock market is for some people a bit of an adventure," Shiller said, adding that "the market may be vulnerable to a change in mass psychology, one that might dampen this sense of adventure and bring on a crash."</p><p>The economist told investors to diversify in asset classes and not be overexposed to US stocks to brace for the period ahead.</p><p>"No one knows the future," Shiller said, "but given the general lack of investor confidence amid a pandemic and political polarization, there is a chance that a negative, self-fulfilling prophecy will flourish."</p><p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/chamath-palihapitiya-shares-5-sectors-shaping-long-term-investing-plan-2020-10" target="_blank" rel="noopener">'I'm basically going to be long growth': Billionaire investor Chamath Palihapitiya has hauled in a 997% return since 2011. He details the 5 sectors shaping his long-term investment playbook.</a></em></p>

Nobel-winning economist Robert Shiller says low investor confidence and high prices are raising the risk of a market crash — and cautions investors not to be overweight stocks

<p class="source"><span>Mario Tama/Getty Images</span></p><p class="caption">Higher investor confidence is affecting federal loan borrowers.</p>New student loan borrowers are about to pay more starting in July when the <a href="https://studentaid.ed.gov/sa/types/loans/interest-rates" target="_blank" rel="noopener noreferrer">federal government increases interest rates</a>.<p>The rates on federal student loans will increase .69 percentage points across a slew of loan products for the 2017-2018 school year. </p><p>Individuals who take out loans between July 1, 2017 and June 30, 2018 will pay 4.45% interest on undergraduate direct subsidized and unsubsidized loans, up from the current rate of 3.76%. Subsidized loans do not accrue interest while borrowers are in school or the loans are in deferment, while unsubsidized loans begin accruing interest right away.</p><p><span>Graduate direct unsubsidized loans will tick up to 6% and PLUS loans - loans given to the parents of students in school - will increase to 7%. </span></p><p>This increase takes the federal student loan interest rate to its highest level since July 2014.</p><p>The rates, which are set by Congress, <a href="https://www.cappex.com/hq/articles-and-advice/financial-aid/student-loans/Federal-Student-Loan-Interest-Rates-Rise" target="_blank" rel="noopener noreferrer">are linked to the 10-year treasury yield</a>. The fluctuating price and interest rate of the treasury bond is generally seen as a measure of investor confidence in the American economy.</p><p>During periods of low confidence, investors seek safe products, leading them to buy up treasury bonds, which increases the price of treasuries while decreasing their interest rate. Conversely, during periods of high confidence, investors don't feel the need to invest in safe products and look instead to other investments, which results in a lower bond price, but higher interest rates on treasuries.</p><p>While increasing investor confidence driving up the 10-year treasury is a good sign for the economy overall, it means that students taking out new loans will be on the hook to pay more in interest to the government for the cost of their education.</p>            <h3>NOW WATCH: <a href="http://www.businessinsider.com/aggressively-paying-student-loans-wrong-financial-move-2017-2">Why aggressively paying your student loans may be the wrong financial move</a></h3>                                    Please enable Javascript to watch this video

A signal of increasing American investor confidence means the cost of paying for college will go up

<p><strong><div class="KonaFilter image-container display-table"><div><div class="image"></div></div></div></strong></p><ul><li><strong>Safe haven assets such as gold, the Japanese yen, and US Treasurys slid after the US and China agreed to a trade truce at the G20 meeting. </strong></li><li><strong>Gold fell below $1400, a psychologically key price, after it soared 10% in June. </strong></li><li><strong>While riskier assets are benefiting from positive trade news now, analysts warn that it might be temporary relief. </strong></li><li><strong><a href="https://markets.businessinsider.com/">Read more on Markets Insider. </a></strong></li></ul><p><span style="font-weight: 400;">Gold is losing some of its glitter after </span><a href="https://markets.businessinsider.com/news/stocks/trump-xi-meeting-g20-june-us-china-trade-war-ceasefire-2019-6-1028318823"><span style="font-weight: 400;">President Donald Trump and Chinese President Xi Jinping agreed to a trade truce</span></a><span style="font-weight: 400;"> at the G20 Summit in Osaka, Japan over the weekend. </span></p><p><span style="font-weight: 400;">The so-called safe haven asset declined by as much as 2% in early trading Monday, the most in a year, and fell below $1400, a key psychological price point for the asset. </span></p><p><span style="font-weight: 400;">The slide in gold comes after a blockbuster June when it gained </span><a href="https://www.businessinsider.com/investing-tips-gold-trading-strategy-to-profit-from-higher-price-2019-6"><span style="font-weight: 400;">10%, pushing to its highest level in about six years</span></a><span style="font-weight: 400;">. Uncertainty around the US-China trade war mounted last month and the Federal Reserve pivoted to a more dovish policy, signaling interest-rate cuts and the potential for weak economic growth ahead. These developments drove the precious metal's rally.</span></p><p><span style="font-weight: 400;"> Gold is an asset that investors look to during times of economic uncertainty and weak growth - generally, the metal is considered a store of value and a hedge against inflation. </span></p><p><span style="font-weight: 400;">The trade deal over the weekend, however, boosted investor confidence that riskier assets such as stocks will continue to outperform. This year, the <a href="https://markets.businessinsider.com/index/s&amp;p_500">S&amp;P 500</a> is up more than 17% even after small losses last week as investors waited to see the outcome of G20.  </span></p><p><span style="font-weight: 400;">"The US-China truce announcement reduces the probability of more tariffs being imposed over the immediate term on shipments between the world's two largest economies, giving markets the go-ahead to push further into risk-on territory for the time being," wrote Han Tan, a market analyst at FXTM, in a note to clients. </span></p><p><span style="font-weight: 400;"><strong><em>A bonus just for you</em></strong><em>:</em><em><a href="https://www.businessinsider.com/subscription/try-prime?ms?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest" target="_blank" rel="noopener"><span> </span>Click here to claim 30 days of access to Business Insider PRIME</a></em></span></p><p><span style="font-weight: 400;">Early on Monday, the S&amp;P 500 jumped to new highs on the news. Many investors are still overweight US equities, including John Stoltzfus, the chief investment strategist of Oppenheimer. In a note Monday, Stoltzfus reiterated his position and year-end target of 2,960 for the S&amp;P 500. </span></p><p><span style="font-weight: 400;">Other safe-haven assets also fell on the trade news. The Japanese yen slipped, as did US Treasurys. The US dollar - which </span><a href="https://www.insider.com/how-g20-summit-trump-xi-meeting-could-push-dollar-lower-2019-6"><span style="font-weight: 400;">Trump has long argued should be weaker</span></a><span style="font-weight: 400;">- rose slightly. The Chinese offshore Yuan rose 0.6% against the dollar Monday morning on the news that Trump and Xi will continue trade negotiations and delayed $300 billion worth of tariffs. </span></p><p><span style="font-weight: 400;">To be sure, the truce announced by Trump and Xi may be only a temporary boost. "We believe the news will be welcomed with a short-term sigh of relief, but suspect investors will eventually lose hope for a deal if the kick-the-can policy continues," wrote Craig Johnson of Piper Jaffray in a note Monday. "The feared storm from escalating tariffs has been avoided for now, but the dark clouds from the ongoing trade war still remain overhead."</span></p><p><span style="font-weight: 400;">If the trade truce doesn't lead to continued talks and signs of progress going forward, it's possible that gold would edge back up. In addition, gold could climb if US economic data adds to signs of a weakening global economy - this week, investors are awaiting the latest jobs report due on Friday to see how the US economy is faring. </span></p><p><span style="font-weight: 400;">Gold gets a boost when the global economy shows signs of slowing. "Economic weakness tends to inflame destabilizing anti-globalization nationalistic political forces around the world; gold is a refuge from economic and political instability," wrote Ed Yardeni of Yardeni Research in a note Monday.</span></p><p><strong><em>Now read more markets coverage from Markets Insider and Business Insider:</em></strong></p><p><em><a href="https://markets.businessinsider.com/news/stocks/emerging-markets-why-investors-should-look-there-for-growth-2019-6-1028311533">The markets poised to outperform developed countries like the US and UK might surprise you - but investors say they're the best places to look for growth</a></em></p><p><em><a href="https://markets.businessinsider.com/news/stocks/how-to-hedge-against-market-downturn-stock-bond-prices-stretched-2019-6-1028311154" target="_blank" rel="noopener">'There are no obvious opportunities': A Wall Street fixed income investment chief at a $23 billion firm says now is the time to protect returns rather than seek new ones</a></em></p><p><em><a href="https://www.businessinsider.com/the-realreal-ipo-here-is-what-you-need-to-know-2019-6" target="_blank" rel="noopener">The RealReal could be valued at $1.6 billion when it starts trading on Friday. Here's what you need to know about the used luxury goods startup's IPO.</a></em></p><p class="tagline">Get the latest Gold price<a href="http://markets.businessinsider.com/commodities/gold-price"> here.</a></p>

Gold slides by the most in a year after Trump and Xi's trade truce renews investors' confidence

New Delhi, Apr 27 () Experts on Monday termed the RBI's move to open a special liquidity facility of Rs 50,000 crore for the mutual fund sector as "brilliant", saying it will improve investor confidence and reduce stress in the corporate debt market.<p> The Reserve Bank of India's decision comes days after Franklin Templeton Mutual Fund decided to close six debt schemes with assets under management of more than Rs 25,000 crore.</p><p> With a view to easing liquidity pressures on mutual funds, the RBI decided to open a special liquidity facility of Rs 50,000 crore.</p><p> At the same time, the RBI highlighted that the stress, however, is confined to the high-risk debt mutual fund (MF) segment at this stage; the larger industry remains liquid.</p><p> Mutual fund industry body Amfi Chairman Nilesh Shah said it is a good confidence building measure to ensure continued confidence of investors on the industry as also normal functioning of the markets.   </p><p> Nimesh Shah, MD and CEO at ICICI Prudential AMC, said that as a pre-emptive step, the RBI through its announcement of special liquidity facility for mutual funds has aimed to reduce the stress in the corporate bond segment.   </p><p> "...This is a welcome and positive step which will improve investor sentiments. We believe that a deflationary environment where prices come down across asset classes makes debt an interesting asset class to invest in today," he added.  </p><p> Given the incident about winding up of six debt oriented schemes of Franklin Templeton MF, there was much anxiousness and concern among investors, specially retail clients.   </p><p> "Brilliant move by RBI to bring confidence to mutual fund investors and also will help to calm down the corporate debt market," ITI Mutual Fund CEO and CIO George Heber Joseph said.</p><p> Ankur Maheshwari, CEO, Equirus Wealth, said the RBI's decision will provide comfort to mutual fund investors and preserve financial stability.</p><p> "Also, while banks had sufficient liquidity already, this is a reassuring step that the regulator is ready to support the markets as and when required," he added.</p><p> Under the Special Liquidity Facility for Mutual Funds (SLF-MF), the RBI will conduct repo operations of 90 days tenor at the fixed repo rate.   </p><p> The scheme will be available from Monday itself till May 11, 2020, or up to utilisation of the allocated amount, whichever is earlier.   </p><p> The RBI further said funds availed under the SLF-MF should be used by banks exclusively for meeting the liquidity requirements of MFs by extending loans, and undertaking outright purchase of and/or repos against the collateral of investment grade corporate bonds, commercial papers, debentures and certificates of deposit held by MFs.  </p><p> "We would need to understand the definition of investment grade debt instruments. Good quality debt instruments were already getting funding, therefore what all grades of debt instruments are included will determine the actual impact on liquidity into MF system," said Omkeshwar Singh, who is head RankMF at Samco.</p><p>  Kaustubh Belapurkar, Director – Manager Research, Morningstar India said the liquidity window will certainly help improve investor confidence. Mutual funds have ample AAA rated exposures which can be used for this purpose.</p><p> "But it will be interesting to see, if banks are willing to lend lower down the credit curve if it comes to that. Liquidity is constrained in the debt markets,especially lower down the credit spectrum," he added.</p><p> He, further, said that debt funds have witnessed redemptions, but most have a significant amount of liquid securities to meet redemptions. This has been in play since March, given the pessimism around the economy slowing down due to the lockdown.</p><p> Amit Jain, Co-Founder and CEO Ashika Wealth Advisors said liquidity window is a positive sentiment  in short term, however in the long run, performance of underlying industry and  business model will determine the future liquidity in corporate bond market</p><p> "Also, we feel, once the lockdown opens we may observe high redemption pressure by Indian corporates from these debt instruments, to fund their day to day operations," he added.</p><p> The announcement comes days after Franklin Templeton Mutual Fund, which has been operating in India for 25 years, decided to shut down its six schemes citing redemption pressures and lack of liquidity in the bond markets.</p><p> The Amfi chairman believes that the mutual fund industry continues to be on sound footing both on portfolio quality as also on the liquidity front despite an isolated incident in these challenging times.</p> Barring four fund houses that have collectively taken loan of Rs 4,427.68 crore, as of April 23, 2020, which is a small percentage of the RBI announcement and also overall MF Industry AUMs, none of the other 40 mutual fund houses has any borrowings, thereby indicating sound liquidity, he added.  SP  MR

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