SHANGHAI After the collapse of yesterday, China bags fell again today, although milder form than in its worst day since 2007, while markets in Europe rebounded and are on the rise .
The general index of the Shanghai Stock Exchange, the main benchmark of Chinese places, lost 1.68 percent today, while the Shenzhen Stock Exchange, the second largest in the country, fell 1.41%.
Although the Shanghai Stock Exchange started the day with over 4 percent decline and collapse reached more than 5 percent during the first half of the session, finally the situation He was moderating.
The setbacks were softer today than yesterday, when the Shanghai index slumped 8.48 percent in its deepest decline since the February 27, 2007 and Shenzhen sank another 7.59 percent.
In Europe, rising
European shares bounced early today after falling in the previous five sessions After several solid business results and some news about mergers and acquisitions.
In the UK, the FTSE rose 0.97%, while the Dax of Frankfurt Stock Exchange reached 1, 07% higher. The Paris CAC rose 1.21%. And the Madrid Ibex 1.13%.
New York
Wall Street opened mixed. The Dow Jones Industrial Average, its main indicator, grew 0.21%, determined to break five straight days of losses in a new round of corporate results and with an eye to a new meeting of the Federal Reserve of the United States ( Fed.)
Half an hour after starting hiring in the second session of the week, the index added 36.55 points up to 17,477.14 points, while the selective S & P 500 marked 2073, 32 whole after advancing 5.68 points or 0.27%.
The index put the name mixed at the opening was the Nasdaq composite, which after a slight rebound in the first minutes, lost 0.08% now, or what is the same, 3.99 units, remaining in the whole 5035.79.
The real devalued follows
Meanwhile, the Sao Paulo stock exchange opened today with a rise of 1.24% to 49,341 points in the Ibovespa index, among others driven by rising 1.4% of the common shares of Banco Bradesco, currently studying the purchase of the operations of the subsidiary of the British bank HSBC in Brazil.
In the currency market after the dollar yesterday reached its highest price since March 2003, the real continued to depreciate and exchanged 3.40 per dollar.
Research in China
Yesterday’s session in China became the subject of an open investigation Regulatory Commission China Securities Market (CRMV), announced the Securities and Exchange Commission spokesman Zhang Xiaojun a brief statement issued after the closing of the bags, which seeks to reassure markets.
The CRMV, already assured yesterday that the state financial institutions will continue buying stocks to try to stabilize the bags, also has opened an investigation into the collapse experienced by the Chinese markets from mid-June.
In fact, the regulator is and on the trail of nine companies listed in the country, of which suspect sold his shares during those critical days of an illicit way, although the investigations seem mainly aimed at maintaining the confidence of those 90 million individual investors stable.
The recovery today was also favored by the message released by the central bank maintain liquidity in the market at a “reasonable and appropriate” level, and seeing Chinese inflation stable.
In addition, the company said that-despite some negative economic data recently-published the fundamentals of the economy remain positive, so we will continue to maintain stable yuan exchange rate and supporting the growth of the real economy during the second half of the year.
The fall of yesterday and today in Shanghai and Shenzhen again seem related to the usual volatility, very sensitive to rumors and the mood of its 90 million Chinese market Individual investors, mostly amateurs without financial literacy, which have poured their savings into equities.
Since its activity involves four fifths of the daily turnover of Chinese stocks, the attitude of these investors was key in the seven months of rising bubble that occurred since 2014 and the sharp prick of June and July, which could only be stopped with a strong intervention by the authorities in the markets.
The intervention Beijing, with injections of financing for marginal credit (for firms and individuals to invest in the stock market) and the mobilization of state-controlled entities, seemed to have stopped the bleeding on 9 July, but recent developments have cast new doubts.
Agencies EFE, DPA and Reuters .
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