Published on : Sep 07, 2015
Amid the lingering fears regarding the health of the Chinese economy, the global stocks were struggling to regain their footing on early Monday.
The Stoxx Europe 600 pinced back some of the losses experienced last week in order to trade 0.3% higher today. However, many markets in the Asian region declined. SCI (Shanghai Composite Index) closed at 2.5%.
In addition, the U.S. stock markets are planned for a close on Monday due to Labor Day. As the U.S. markets are closed today, Asia remains to be in focus. This region lays its focus on investors and broadly speaks of continuing to see a lot of nervousness in financial markets, said senior manager at BlueBay Asset Management. He foresees billions in assets.
China has revised its growth rate from 7.3% in 2014 to 7.4% in 2015. This value added to the world’s second-largest economy on Monday. China’s growth target was about 7% in 2015. It was the slowest pace seen in quarter century. The rebound; however, in Europe was being stirred by investors’ confidence on the fact that central banks will invest in and support the economy if required, added a strategist at Société Générale.
Bank chief at China’s central bank said to the Group of 20 biggest economies that the stock market correction is almost done. This will help the country’s financial markets to stabilize after the currency steadies due to a devaluation seen in the last month.
Analysts of the U.S. Federal Reserve are bracing for more volatility. The central bank meeting between 16 and 17 will consider the first rise in short-term interest rates in nearly 10 years.
Stocks and commodities suffered choppy trading in the previous week as the European Central Bank offered more stimulus and did not give investors clarity about the timing at a rate rise.
On Friday, the Stoxx Europe 600 index closed at 2.5%, taking losses for the week to 2.8%, while the U.S. stocks capped their worst weekly performance of the year.
Brent crude oil was lower 1.0% worth $49.12 a barrel.