Meanwhile the oil price slide has hit Russia’s stock exchange, which is down more than 3.5pc.
Advertisement
The benchmark Shanghai Composite Index tumbled 5.27 percent, or 154.96 points, to 2,783.55. “Sentiment remains fragile; thus on and off shift in sentiment is not so surprising”. Crude is down by more than a fifth this year on the back of concerns over slowing demand and that the lifting of sanctions against Iran would exacerbate a supply glut. The Shenzhen Composite Index jumped by 1.01 percent, or 18.44 points at 1,845.78.
“Falling oil prices have historically been positive for the world economy, given the redistribution of purchasing power from producers to consumers”.
USA stocks ended lower Monday as oil prices dropped.
Although the central bank seems to be very clear in its policy intentions at the moment, Wang said she still expected the PBOC to conduct multiple RRR cuts in 2016. A strong hint from the European Central Bank last Thursday that it might boost its monetary stimulus programme as soon as March provided a temporary respite for markets. The euro inched up to $1.0856 from $1.0850.
All eyes will be on a US Federal Reserve meeting this week to see whether it acknowledges concerns over the faltering Chinese outlook and global market turmoil and whether that will delay any interest rate increases this year. March Brent crude fell 2.8 per cent to US$29.66 a barrel, following a 5.2 per cent loss in London on Monday night.
Major markets are deep in negative territory so far this year. But increasingly, the oil market is driving the action. But a firmer yen is not good news for the exporter-sensitive Japanese stock market, and the Nikkei 225 fell 2.4 per cent. “We are less than two weeks from the spring festival and it seems that most investors are in no mood to trade anymore”.
The injection through the regular open market operations of the central bank was the largest since 2013, Bloomberg News reported.
Advertisement
But the Greater China stock markets were not impressed. By the close of trading on Tuesday, the benchmark index had plummetted 6.42 per cent or 188.72 points to 2,749.79, the lowest close since early December 2014.
