The strong rally in Chinese markets stumbled on Wednesday, after stocks fell and commodities struggled to stabilize as Investors moderated hopes for a strong recovery in the Chinese economywhich kept pressure on global stocks.
Benchmark stock indices in China posted their biggest daily losses since the Covid-19 pandemic began. Shanghai stocks and the benchmark index closed with falls of more than 6% and 7%respectively.
He MSCI index global equity market, which tracks stocks in 47 countries, was flat.
S&P and Nasdaq futures indicators lost around 0.2%. US indices had closed higher on Tuesday, with technology stocks leading the gains.
Investors’ attention will now focus on a Chinese Ministry of Finance press conference scheduled for Saturday, detailing fiscal stimulus plans to boost the economywhich points to more forceful policies to reactivate growth.
The main European stock index rose 0.2%. The public services, healthcare and real estate sectors, all considered a safer bet in times of uncertainty, were in high demand.
* Dalian iron ore and Shanghai copper posted losses, while Brent crude futures, which fell 4.6% during the Asian session, were down 0.4% at $76.90 a barrel.
Meanwhile, Japan’s Nikkei rose 1%. Shares of Seven & I Holdings – owner of 7-Eleven convenience stores – rose 4.7% after news that Canadian retailer Alimentation Couche-Tard would raise its takeover offer.
What data does the international market expect?
on Wednesday Minutes of the September meeting of the United States Federal Reserve will be publishedin which rates were cut by 50 basis points.
Expectations for Fed rate cuts were reduced following last week’s strong labor market data, which lifted bond yields and the dollar.
The dollar rose 0.3% against the Japanese yenat 148,550 yen, and at 1,096 dollars per euro.
Source: Ambito
