A look at the day ahead in European and global markets from Tom Westbrook
Gravity brought China’s soaring stock market back to earth with a thud on Wednesday. Disappointment about the lack – so far – of follow-through on stimulus promises has triggered a pullback in a spectacular rally and could be a harbinger of further weakness in China-exposed assets trading in London and Europe.
At the time of writing, the Shanghai Composite was down more than 5% and headed for its largest slump since the pandemic collapse of February 2020.
A bounce in Hong Kong was quickly snuffed out. Metals and other commodities were on the slide along with China proxies such as the Australian dollar. [.HK][MET/L][AUD/]
China watchers say yesterday’s National Development and Reform Commission news conference was never going to be the forum for a substantial policy announcement.
“More patience please,” noted HSBC economist Jing Liu in a note pointing out that we…
