Breaking News

Chinese shares plummet four percent on growth worries

News Date: 25/2/2016 01:35:59
 
Chinese shares tumbled on Thursday on worries over the state of economic growth in the world's second largest economy, as it transforms itself from an investment-based economy to a consumer spending model. The tumble comes directly before the meeting of the Group of 20 in Shanghai to discuss global fiscal policies and possible coordination.

China's Shanghai index slumped 4.11% to trade at 2,809, while across the sea, it was a very different story, with Japan's Nikkei jumping 1.41% to above the level of 16,000 again, taking advantage of the yen's decline, which buoys exporters' competitiveness abroad. Australian shares on the other hand recorded a small profit of 0.13%, after touching a nine-day low earlier in the session.

Wall Street recovered on Wednesday after a negative start, supported by rebounding oil prices, with Dow Jones closing up 53 points, or 0.32% at 16,484. NASDAQ Composite jumped 39 points, or 0.87% to 4,542, making it the day's biggest winner. S&P 500 similarly climbed eight points, or 0.44% to end at 1,929.

Oil prices rose nearly one percent yesterday after a report said that gasoline demand rose by 5% y/y in the last four weeks, somehow offsetting the persistent growth of U.S. crude inventories to new record highs, and offering a glimpse of hope that demand in the world's largest oil consumer would catch up to supply and rebalance the markets consequently.  

Brent crude futures last inched down four cents, or 0.12% to trade at $34.37 a barrel, as traders take profits of yesterday's rise. U.S. West Texas Intermediate (WTI) crude futures similarly slipped five cents, or 0.15% to hover around $32.05 a barrel, firming away from the $30-level.

On the Forex markets, the euro pushed back against the dollar to trade last at 1.1034, up 0.20% on the day after plumbing a three-week low yesterday at 1.0955. The yen on the other hand lost 0.10% versus the greenback to hover around 112.27, sterling was largely flat at 1.3929, not far from a seven-year nadir hit yesterday on Brexit worries.

A basket of crucial data is awaited today, with Britain's second estimate for GBP expected to show a growth of 0.5% q/q in the fourth quarter of 2015, same as the first estimate, but not good enough to help the struggling sterling.

From the U.S., unemployment claims for last week are forecast at 271K, higher than the previous reading's 262 thousand, but still way below the level of 300,000, which is positive for the U.S. labor market and the greenback.

Latest news

Gold futures contracts ended this week higher, rising 0.14%, to be traded at a price of 1907.35 dollars an ounce. Previously, contracts were traded in a higher session at a price of 1910.20 dollars a
10-2020 23 03:23:18

Today, gold futures are down 0.69%, to be traded at $ 1916.25 an ounce. Previously, the contracts were traded in a lower session at a price of 1913.05 dollars an ounce. Gold is expected to find suppo
10-2020 22 02:02:18

The US stimulus package was discussed on yesterday by the Speaker of the US House of Representatives and Secretary of the Treasury Stephen Mnuchin, in an interview that lasted 45 minutes, and the dis
10-2020 21 01:27:37

US House of Representatives Speaker Nancy Pelosi set today, Tuesday, as the last date for the US Congress, to approve a new stimulus package bill before the presidential election date (November 3), w
10-2020 20 02:30:24

The talk about the implementation package, which is an American plan to support the economy in the face of the epidemic, has continued since last July, with the continuing spread of the Corona virus
10-2020 19 03:46:14

More News

Logs

Advertisements