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Stock markets slide after China suspends trading again - live updates

Discussion in 'Market News' started by Lily, Jan 7, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    Shares tumble around the globe after Chinese regulators are forced to halt trading for the second time this week, as the yuan depreciates faster

    7.24am GMT

    From Beijing, my colleague Tom Phillips sums up the dramatic action in China today:

    China halted the day’s trading within 30 minutes of opening on Thursday morning as shares plunged by more than 7% – triggering an automatic “circuit breaker” – and authorities accelerated the devaluation of the Chinese yuan.

    China’s recently installed “circuit breaker” mechanism paused trading for 15 minutes after the CSI300 index fell 5% in the first 13 minutes of trading. On resumption of trading it fell further, triggering the day’s halt.

    Christopher Balding, a professor of finance and economics at Peking University’s HSBC business school, said he expected more government action to halt the stock market drops, “whether it is changing the circuit breakers, whether it is again intervening in the market, whether it is extending the ban on large selling by institutions.”

    “I’d be surprised if they let this continue going down. By almost any measure, the Chinese stock market is pretty over valued and so you would be looking at a pretty significant fall to get back to a reasonable valuation. I would be surprised if they allowed it to move back to more appropriate levels.”

    Related: China share trading halted after market plunges 7% in opening minutes

    7.14am GMT

    Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

    The great concern for global markets is that the dramatic pace of the currency devaluation seems to indicate a far greater weakness in the Chinese economy than is easily perceivable in its publicly released statistics.

    A lot of people in the market are speculating that this is primarily about boosting exports and stimulating the slowing economy. While this no doubt will help, the primary concern for the government is deflation.

    Our European opening calls: $FTSE 5955 down 118 $DAX 9979 down 235 $CAC 4391 down 89 $IBEX 9002 down 196 $MIB 20132 down 291

    Related: George Osborne warns UK economy faces 'cocktail of threats'

    Results @marksandspencer pretty ugly...GM (clothing/homeware) LFL sales -5.8% well below -2% estimate. Food LfL +0.4% trailing estimates

    Continue reading...

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