World stocks down on China hike fears, Europe woes
Wednesday, 1 December 2010
BANGKOK, Nov 30 (AP): World markets were lower Tuesday as Chinese shares slid on fears of an interest rate hike and the European Union's bailout of Ireland failed to convince investors the continent's debt crisis has been contained.
Oil prices hovered below $86 a barrel in Asia as traders looked to US supply reports for clues about the strength of demand for crude. In currencies, the dollar was down against the yen and higher versus the euro.
European markets largely fell in early trading. Britain's FTSE 100 was up 0.1 per cent to 5,555.22. Germany's DAX was down 0.1 per cent at 6,694.30 and France's CAC-40 slipped 0.3 per cent to 3,624.61. Wall Street was set to open lower, with Dow futures down 0.3 per cent to 11,007.
Chinese shares trimmed some losses after volatile trading that took the Shanghai benchmark down 3.4 per cent in the morning on worries over fresh inflation-fighting measures.
The Shanghai Composite Index closed down 1.6 per cent to 2,820.18. The Shenzhen Composite Index for China's smaller, second exchange fell 2.4 per cent to 1,307.83.
Soaring prices in China, the world's No 2 economy, are so far limited mostly to food, but analysts say price pressure could spread to other areas unless Beijing hikes interest rates and further tightens credit.
Investors worry that might slow economic growth or reduce the amount of money flowing through the economy that is helping to finance stock trading.
Oil prices hovered below $86 a barrel in Asia as traders looked to US supply reports for clues about the strength of demand for crude. In currencies, the dollar was down against the yen and higher versus the euro.
European markets largely fell in early trading. Britain's FTSE 100 was up 0.1 per cent to 5,555.22. Germany's DAX was down 0.1 per cent at 6,694.30 and France's CAC-40 slipped 0.3 per cent to 3,624.61. Wall Street was set to open lower, with Dow futures down 0.3 per cent to 11,007.
Chinese shares trimmed some losses after volatile trading that took the Shanghai benchmark down 3.4 per cent in the morning on worries over fresh inflation-fighting measures.
The Shanghai Composite Index closed down 1.6 per cent to 2,820.18. The Shenzhen Composite Index for China's smaller, second exchange fell 2.4 per cent to 1,307.83.
Soaring prices in China, the world's No 2 economy, are so far limited mostly to food, but analysts say price pressure could spread to other areas unless Beijing hikes interest rates and further tightens credit.
Investors worry that might slow economic growth or reduce the amount of money flowing through the economy that is helping to finance stock trading.