Market Mayhem: Europe Volatile Amid Fightback

Written By Unknown on Selasa, 25 Juni 2013 | 18.56

European stock markets are tentatively putting on some weight after China moved to reassure investors that its credit tightening policy would not damage liquidity.

Asian stock markets suffered steep falls during much of Tuesday's session - with the Shanghai Composite Index entering bear market territory, analysts said, following falls of more than 5% at one stage on top of steep declines on Monday.

But Tuesday's losses were largely erased in late-trading - with Shanghai just 0.2% down - after the People's Bank of China (PBC) moved to clarify its earlier intervention, aimed at curbing a cheap credit boom.

The worry for investors - particularly those in small banks - was that higher commercial lending rates would damage the banks and growth in the world's second-largest economy.

The crackdown left markets in China particularly fearing a liquidity squeeze.

Markets Board 0825 June 25 Prices correct at 08:25 BST On Tuesday

Shanghai's stock index had endured its biggest loss in four years on Monday while the pain was also felt worldwide, with the US and European markets falling back further, having already been spooked in recent weeks by the prospect of the US Federal Reserve easing its $85bn-a-month bond-buying programme.

A top US central banker warned on Monday against market attempts to lift the yields on US Treasuries and stop plans to slow the Fed's stimulus.

Richard Fisher, who is president of the Dallas Federal Reserve, told the Financial Times that "feral hogs" would not break the Fed's resolve.

The FTSE 100 share index lifted 0.7% in early trading on Tuesday from five-month lows while there were stronger gains on the continent which were all seen as adding value because of under-valued stocks.

FTSE 100 Since May 22 Price correct at 08:30 BST On Tuesday

The London market has lost more than 10% of its value since concerns first arose last month about the prospect of Fed stimulus easing.

In his final evidence session to the Treasury Select Committee as governor of the Bank of England, Sir Mervyn King said he believed that markets had "jumped the gun" about when central banks were likely to start raising base interest rates, amid the stimulus debate.

He said: "I think people have rather jumped the gun thinking this means an imminent return to normal levels of interest rates. It doesn't."

He added that economic growth would need to be stronger before interest rates could be increased.


Anda sedang membaca artikel tentang

Market Mayhem: Europe Volatile Amid Fightback

Dengan url

http://temannyakawanya.blogspot.com/2013/06/market-mayhem-europe-volatile-amid.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

Market Mayhem: Europe Volatile Amid Fightback

namun jangan lupa untuk meletakkan link

Market Mayhem: Europe Volatile Amid Fightback

sebagai sumbernya

0 komentar:

Posting Komentar

techieblogger.com Techie Blogger Techie Blogger