Tuesday, September 26, 2023
HomeBusinessChina's troubled economy sparks plunge in global stocks, oil prices

China's troubled economy sparks plunge in global stocks, oil prices

Stocks and futures fell in Asia, Europe and the U.S. on Tuesday as concerns grew over China’s economy and the communist regime’s refusal to deal honestly with its systemic problems.

Stocks fell on Tuesday after China announced a much weaker-than-expected interest rate cut. Reuters quoted economists as saying they found Beijing’s policy moves deeply disappointing, despite some There is hope for strong action after the next Politburo meeting:

“The purpose (of China’s rate cut) was to boost lending, but investors seemed somewhat disappointed by the action, and they were waiting for promises to boost Further steps to revive the economy come true,” said Susannah Streeter, Director of the Currency

Analysts at BofA Global Research said in a note that “such marginal easing” could help prevent a sharp slowdown in growth, but “is unlikely to provide a strong impetus in the near future to reverse the decline in growth”.

Bloomberg News Society recommends No further rate cut due to political reasons, especially Chinese government’s reluctance to promote real estate speculation:

Prime rates for one-year and five-year loans have been reduced per basis point, according to a statement from the People’s Bank of China.

While this is in line with the PBOC’s policy rate cut last week, some economists Experts had predicted that five-year interest rates (the reference for mortgages) would be slashed by 15 basis points to support Weak real estate market. Peng Xiaolong, Chief Economist and Head of Greater China Research at Jones Lang LaSalle, said that under the principle of “housing to live in, not speculation”, it has sent an overly optimistic signal to the real estate market.

Investors also A visit to Beijing that disapproved of Secretary of State Anthony Blinken’s policies made only vague promises to “stabilize” U.S.-China relations.

Saxo Market Strategist Redmond Wong told Reuters, “The meeting Helps improve sentiment, but markets also understand that there is a strategic competition between the U.S. and China.”



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