China stocks get a reality check; Europe shudders
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
CHINA STOCKS GET A REALITY CHECK; EUROPE SHUDDERS
A look at the day ahead in European and global markets from Tom Westbrook
Gravity brought China's soaring stock market back to earth with a thud on Wednesday. Disappointment about the lack - so far - of follow-through on stimulus promises has triggered a pullback in a spectacular rally and could be a harbinger of further weakness in China-exposed assets trading in London and Europe.
At the time of writing, the Shanghai Composite .SSEC was down more than 5% and headed for its largest slump since the pandemic collapse of February 2020.
A bounce in Hong Kong was quickly snuffed out. Metals and other commodities were on the slide along with China proxies such as the Australian dollar. .HKMET/LAUD/
China watchers say yesterday's National Development and Reform Commission news conference was never going to be the forum for a substantial policy announcement.
"More patience please," noted HSBC economist Jing Liu in a note pointing out that we are yet to hear from the State Council or the finance ministry on the specifics of stimulus.
But, clearly, the opportunity to reassure markets has been missed and the rally is unlikely to be sustainable until authorities show investors the money, and lots of it.
China volatility already pulled down European miners and luxury stocks on Tuesday but further drops in the iron ore price and selling of Rio Tinto RIO.AX and BHP BHP.AX shares in Sydney suggest more pressure ahead. .AX.L.EU
Elsewhere the New Zealand dollar NZD=D3 slid through its 200-day moving average as the central bank cut interest rates by 50 basis points and left the door open to further cuts - just as markets are paring back their expectations for U.S. rate cuts.
Indian government bonds rallied after FTSE Russell said they would be included in its emerging markets' index. South Korean government bonds were added to the FTSE World Government Bond Index (WGBI) but were not traded owing to a public holiday.
Minutes for September's Federal Reserve meeting are due later in the session, though they may not add much since Fed officials have been out in force in recent days pointing out last week's strong jobs reading is positive for the economy.
Key developments that could influence markets on Wednesday:
- German trade data
- September Federal Reserve minutes
*****
Chinese stocks rally loses steam https://reut.rs/3Nkj1LQ
Aset Berkaitan
Berita Terkini
Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
