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Topic: European stock markets fall again as China worries bite (Read 648 times)

legendary
Activity: 868
Merit: 1006
What's funny is some analysts and politics are already saying China's situation is not that bad and basically how its good that the chinese goverment is manipulating the stock market. Don't watch the Manipulated Stock Markets to tell you what to do. Take a look at commodities prices and tell me with a straight face that everything is great in China and that the Chinese government can control world demand lol.
legendary
Activity: 1148
Merit: 1006
China’s problems have strike certainty around a universe. China is a world’s biggest consumer of spark and metals and is an critical marketplace for exports of machines and consumer goods. Because of china slow down european and US bonds market also came down quite a lot.
Pab
legendary
Activity: 1862
Merit: 1012

 That is interesting to see what is going in Europe compare to news EBC told today that thay will take further steps to prevent deflation.Thay want increase 60bln QE monthly,normally markets would be happy,but that looks like futrher step to currency war,that can kill Europe.Sell off in China now is becouse markets want more stimuls from China Central Bank,same like it was in 2008 in USA.Generally it is one big chaos what will not end soon
hero member
Activity: 1470
Merit: 504
It's not the crash that's alarming, but how ineffective the attempts have been to soften it. Conventional methods haven't worked here, not even when combined with unconventional ones... Remember, there's still a ban on stock sales by large Chinese shareholders from July until the end of this year... http://www.bloomberg.com/news/articles/2015-07-08/china-bans-stock-sales-by-major-shareholders-for-six-months

It's been said recently in the MSM that china is now taking a "hands off" approach, but the reality is that they've lost control of the situation, and there aren't really any palatable measures they can take with any goal of recovery in mind; at least recovery without major sacrifice...

Sometimes worrying is an impulse serving the interests of self-preservation. It's only in times that we worry where there's nothing logical to fear that cause us to discredit legitimate threats, worthy of actual concern.
legendary
Activity: 896
Merit: 1000
China’s problems have hit confidence around the world because its growth has served as a backstop for the global economy since the financial crisis started.

chinese stock market crash is completely normal. especially if you consider how much growth the chinese economy has had in the past years. the recovery that will follow will be a slow one.
newbie
Activity: 28
Merit: 0
China’s problems have hit confidence around the world because its growth has served as a backstop for the global economy since the financial crisis started.
hero member
Activity: 560
Merit: 500
WPP chief insists he ‘remains a raging bull’ about China as global sell-off continues amid fears over health of world’s second-biggest economy


European stocks resumed their falls on Wednesday as fears about the Chinese economy once again gripped investors and a late plunge in US stocks unnerved the market.

The FTSE 100 fell by 102 points, or 1.68%, by the close of trading to 5,979 points, below the key 6,000 mark. Leading British shares had staged a partial recovery on Tuesday after heavy falls on Monday.

But Sir Martin Sorrell, head of WPP, the world’s biggest advertising company, which employs 16,000 people in China, expressed his confidence in the Chinese economy.

“I remain a raging bull in regards to China,” he told BBC Radio 4 Today’s programme on Wednesday morning, adding that the world should not forget how far the Chinese economy had come since 1985 when it “embraced the capitalist economy”.

He said the Chinese stock market had become overblown and was undergoing a correction, but long-term secular growth in China was here to stay.

Read more: http://www.theguardian.com/business/2015/aug/26/european-stock-markets-china-worries
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