subject: Due to Chinese Interst Rate Rise European Equities Were Dull [print this page] Due to Chinese Interst Rate Rise European Equities Were Dull
European equities looked dull as an interest rate rise in China unnerved investors and sent macro-sensitive commodity stocks tumbling, while gains in the euro zone periphery helped cap losses.Commodity stocks are down and the equities are also gloomy..so I think we should be careful while thinking to invest in commodities across europe..And also investors are concerned of higher interest rates in China, that would hit economic growth.Wall Street ended on winning note as the threat of rising interest rates in China prompted investors to book profits and reassess bullish positions in equities. Investors were seen worried about tighter credit in China would curb demand for commodities, driving down energy and natural resource stocks.
Wariness over possible further tightening measures by China forced fund operators to lock in profits from risk assets, including commodities and equities.The Japanese equities was seen down as profit-taking intensified when recent rallies, reflecting sharp falls in Chinese shares and plunges in oil and other commodities prices.
Oil vacillated, tracking the euro much of the day,deepening losses as the dollar bounced when greenback buying was sparked by an uptick in Treasury yields.Oil prices slumped amid a broad commodities rout on fears that China may raise interest rates to brake its economy and concerns about euro zone debt.Gold suffered its biggest fall as Chinese rate-hike talk, euro zone debt worries and weaker Treasuries prices triggered widespread unwinding of risk in commodities.
German 10-year bunds rose when a report showed that the economic growth in the euro-region's largest economyslowed in the third quarter, boosting demand for the safest assets.The US Treasury Market remained lower on speculation that the European leaders would bolster the euro area's most-indebted nations, reducing demand for safety.
The Euro edged up higher but still had its worst week against the dollar since August. Traders said lingering uncertainty about Ireland's public finances should keep it under pressure next week.On the other hand, the dollar benefited this week from fears that Ireland may need financial assistance to pay its debts, adding to that a second round of monetary easing in the United States was likely to limit its gains against the euro in the coming sessions.
