china fears keep markets on edge as stocks rally
Last Updated : GMT 05:39:09
Arab Today, arab today
Arab Today, arab today

China fears keep markets on edge as stocks rally

Arab Today, arab today

Arab Today, arab today China fears keep markets on edge as stocks rally

Investors monitor screens showing stock market movements
New York - AFP

Top global markets ended the week Friday largely recovered from China-induced panic selling, but market watchers remain worried the turmoil in the world's number two economy will drag down global growth.

After a bout of violent selloffs, the final tally for stocks was deceptively benign. US and European equity markets actually mustered gains for the week, while the Shanghai index finished down just 0.79 percent.

Yet worries about China kept enthusiasm at bay, as investors pondered how slower growth there would affect slumping commodities, such as oil and copper, as well as the economies of its Asian neighbors and the US and other trading partners.

"There still does not seem to be the macro foundations for indices to fully recover from their corrections, as concerns over China and uncertainty over Fed rate hikes continue to linger," said IG Markets analyst Angus Nicholson.

On Friday, Moody's slashed its 2016 growth forecast for leading G20 economies to 2.8 percent from 3.1 percent, predicting contractions in Brazil and Russia and lower demand for manufactured goods in Korea and Japan due to China.
"Slower growth in China makes a significant rebound in commodity prices in the near term unlikely," said Moody's senior vice president Marie Diron.

"A more prolonged period of low commodity prices will lead to muted export revenues and investment for commodity-exporting G20 economies."

US Federal Reserve Vice Chair Stanley Fischer told CNBC it was "too early to tell" whether the markets turmoil sparked by China has lessened the argument for a long-expected increase in the federal funds rate.

"The concern is that there are a lot of countries influenced by trade with China," Fischer said.

"East Asia is particularly associated with that. The question is whether interactions among those countries will amount jointly to something that would have an impact on us."

- Investors 'exhausted' -
The market's brutal swings wore on investor psyche. The most violent moves came on "Black Monday," after the Shanghai bourse plunged 8.5 percent.

Leading European markets fell at least 4.5 percent and the Dow dumped 1,000 points in a short stretch before recovering somewhat.

But after the stunning losses, markets turned around, helped by an interest rate cut and more apparent official share-buying efforts in China, and strong US economic data, especially a report showing much better-than-expected 3.7 percent growth for the second quarter.

Among major markets, Japan's Nikkei 225 finished down 1.54 percent for the week, while Hong Kong dropped 3.56 percent.

But London's benchmark FTSE 100 index added 0.97 percent, the CAC 404 in Paris 0.95 percent, and Frankfurt's DAX 30 1.72 percent. In the US, the S&P 500 rose 0.91 percent over a week earlier.

Still, China's markets were still nearly 40 percent down from their July peak, and that represents huge investor losses that are already seen turning into more pain on the streets.
Many analysts see increased strains on China's financial system from the share market losses, and a possible significant slump in consumer spending.

Hugh Johnson of Hugh Johnson Advisors said investors were "exhausted" at the gyrations as they try to prepare for what could come next.

"The message is you should worry about China, but you should not over-worry about China," Johnson said.

Briefing.com analyst Patrick O'Hare said nothing was cleared up by the end-week recovery.

"The speed at which the sell-off and the rebound occurred has left everyone grappling to explain why it happened, what it means, and what comes next. No explanation is wholly sufficient," O'Hare said.

 

arabstoday
arabstoday

GMT 02:02 2017 Thursday ,23 November

Asian markets rally after Wall St lead, euro struggles

GMT 22:40 2017 Wednesday ,22 November

Bahrain Bourse daily trading performance

GMT 11:50 2017 Tuesday ,21 November

European stocks shrug off Germany's political woes

GMT 03:59 2017 Tuesday ,21 November

Weekly inflation decreases by 0.88%

GMT 23:50 2017 Monday ,20 November

Bahrain Bourse daily trading performance

GMT 14:54 2017 Sunday ,19 November

Bahrain Bourse daily trading performance

GMT 03:16 2017 Saturday ,18 November

Asian markets head for positive end to volatile week

GMT 11:57 2017 Friday ,17 November

US stocks boosted by solid Wal-Mart, Cisco earnings
Arab Today, arab today
Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

china fears keep markets on edge as stocks rally china fears keep markets on edge as stocks rally

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

china fears keep markets on edge as stocks rally china fears keep markets on edge as stocks rally

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today The Big Apple bike boom

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Leaders of Russia, Iran, Turkey meet

GMT 10:12 2017 Wednesday ,22 November

Leaders of Russia, Iran, Turkey meet
Arab Today, arab today 'Advanced' cyber attack targets Saudi Arabia

GMT 10:18 2017 Wednesday ,22 November

'Advanced' cyber attack targets Saudi Arabia
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Singer Jahda Wahba has unlimited ambitions

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 13:41 2017 Tuesday ,21 November

French choke up over proposal

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday