In our Chinese stock market wrap following Friday's unexpected rate cut, which saw the Shanghai Composite storm out of the gate, we said that "we would not be surprised to see China's stocks sliding back into the red very shortly as "sell the news" concerns return, and as the increasingly more addicted "markets" demand even more liquidity from central banks just to stay unchanged, let alone rise to new all time highs." Sure enough, with just minutes to go before
Just like the last time when Chinese flash PMI data came out at the lowest level since the financial crisis, so overnight when both the official Chinese manufacturing and service PMI data, as well as the Caixin final PMI,s confirmed China's economy has not only ground to a halt but is now contracting with the official manufacturing data the lowest in 3 years and the first contraction in 6 months, stocks around the globe tumbled on concerns another major devaluation round by the PBOC is just around the corner (especially following the unexpected strenghtening in the
London (AFP) - Fresh Chinese stimulus sparked a global stocks rally Wednesday in markets that had been coloured red by fears of a slowdown in the world's second-largest economy, with Tokyo surging almost 8 percent.
NEW YORK: World stock markets tumbled in their worst week of the year on Friday and commodities swung lower as more data pointing to slower growth in China sent investors scurrying to the safety of bonds and gold. Emerging market assets took another hammering and oil prices headed toward their longest losing streak in almost 30 years after data showed Chinese factory activity shrank at its fastest pace since the 2009 financial crisis.
Marc Chandler submits:The US dollar is consolidating this week’s gains in choppy activity. Stronger than expected eurozone GDP (1.0% quarter-over-quarter) failed to lift the euro as much as one might have expected. It appears the market quickly realized this is as good as it gets. Heightened tensions remain evident in the European debt markets and this may also be helping to limit euro upticks.