This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.nytimes.com/2015/08/28/business/dealbook/daily-stock-market-activity.html

The article has changed 20 times. There is an RSS feed of changes available.

Version 6 Version 7
Global Shares Follow Wall Street’s Rise, With China Joining the Rebound Global Shares Follow Wall Street’s Rise, With China Joining the Rebound
(35 minutes later)
HONG KONG — Shares in China rose on Thursday for the first time in a week as markets rallied throughout Asia on the heels of a Wall Street rebound. European markets also opened stronger.HONG KONG — Shares in China rose on Thursday for the first time in a week as markets rallied throughout Asia on the heels of a Wall Street rebound. European markets also opened stronger.
The Shanghai composite index was down 0.65 percent in the last hour of trading, and then it shot up and closed more than 5 percent higher for the day. Trading volumes were heavier than usual during that time — an indication of state intervention. But volatility remained muted compared with recent days.The Shanghai composite index was down 0.65 percent in the last hour of trading, and then it shot up and closed more than 5 percent higher for the day. Trading volumes were heavier than usual during that time — an indication of state intervention. But volatility remained muted compared with recent days.
Shanghai and Shenzhen were the only major markets in the region to drop into negative territory on Thursday, although both recorded gains for the day. The rest of Asia appeared to have been buoyed by hints that interest rate increases in the United States might not be as imminent as had been believed.Shanghai and Shenzhen were the only major markets in the region to drop into negative territory on Thursday, although both recorded gains for the day. The rest of Asia appeared to have been buoyed by hints that interest rate increases in the United States might not be as imminent as had been believed.
Japanese stocks rose for a second straight day and finished up just over 1 percent. Australian shares finished the day 1.2 percent higher.Japanese stocks rose for a second straight day and finished up just over 1 percent. Australian shares finished the day 1.2 percent higher.
Europe turned positive, with the Euro Stoxx 50 index of eurozone blue chips 3.2 percent higher in midday trading. A late sell-off the day before had sent the main European indexes down about 1.5 percent.Europe turned positive, with the Euro Stoxx 50 index of eurozone blue chips 3.2 percent higher in midday trading. A late sell-off the day before had sent the main European indexes down about 1.5 percent.
Global markets tumbled last week over concerns about China’s ability to manage its economic slowdown and the weakness of once-favored emerging economies. Chinese stocks plunged in June after a rally that more than doubled share values in a year, and they continued to defy government moves to prop them up.Global markets tumbled last week over concerns about China’s ability to manage its economic slowdown and the weakness of once-favored emerging economies. Chinese stocks plunged in June after a rally that more than doubled share values in a year, and they continued to defy government moves to prop them up.
Broader efforts to stoke the economy, including a devaluation of the renminbi, did little to reassure investors and fueled suspicions that growth in China is weaker than official figures show.Broader efforts to stoke the economy, including a devaluation of the renminbi, did little to reassure investors and fueled suspicions that growth in China is weaker than official figures show.
After maintaining silence on the stock market until early in the week, People’s Daily, the Communist Party newspaper, quoted experts saying that market volatility could not be attributed to China.After maintaining silence on the stock market until early in the week, People’s Daily, the Communist Party newspaper, quoted experts saying that market volatility could not be attributed to China.
“As for capital markets, China’s capital markets do not have strong interconnectivity with international markets,” it said. “There is no basis for the view that international capital markets feel the impact and shock waves from China’s capital markets.”“As for capital markets, China’s capital markets do not have strong interconnectivity with international markets,” it said. “There is no basis for the view that international capital markets feel the impact and shock waves from China’s capital markets.”
Citing Lian Ping, the chief economist for the Bank of Communications, it also said that “supervision of capital markets must be strengthened, and in particular illegal activities that cause market volatility and damage to market confidence must be harshly attacked.”Citing Lian Ping, the chief economist for the Bank of Communications, it also said that “supervision of capital markets must be strengthened, and in particular illegal activities that cause market volatility and damage to market confidence must be harshly attacked.”
Analysts at Standard Chartered wrote in a research note that the recent plunge was “a further correction to better reflect China’s economic fundamentals, rather than a sign of sharp deterioration in the real economy.”Analysts at Standard Chartered wrote in a research note that the recent plunge was “a further correction to better reflect China’s economic fundamentals, rather than a sign of sharp deterioration in the real economy.”
They expect the People’s Bank of China to loosen monetary policy even further before the end of the year, noting that “the government’s missteps in the stock market have caused collateral damage to public confidence in its ability to stabilize growth.”They expect the People’s Bank of China to loosen monetary policy even further before the end of the year, noting that “the government’s missteps in the stock market have caused collateral damage to public confidence in its ability to stabilize growth.”
Andrew Colquhoun, head of Asia-Pacific sovereign ratings at Fitch Ratings in Hong Kong, agreed that markets were adjusting to the idea of a slower-growing China.Andrew Colquhoun, head of Asia-Pacific sovereign ratings at Fitch Ratings in Hong Kong, agreed that markets were adjusting to the idea of a slower-growing China.
“My sense is that what has really shifted is a growing realization that the new normal for China is a slower trend growth rate, almost certainly well below 7 percent for the rest of the decade, with more volatility around it — including financial volatility, as we’ve recently started to see,” he said.“My sense is that what has really shifted is a growing realization that the new normal for China is a slower trend growth rate, almost certainly well below 7 percent for the rest of the decade, with more volatility around it — including financial volatility, as we’ve recently started to see,” he said.
Fears that weakness in China would reverberate across the globe had been compounded by the prospect that the Federal Reserve would soon raise interest rates.Fears that weakness in China would reverberate across the globe had been compounded by the prospect that the Federal Reserve would soon raise interest rates.
After six days of losses, stocks in the United States rose about 4 percent on Wednesday after William C. Dudley, president of the Federal Reserve Bank of New York, suggested that the cheap money that has lifted markets might flow a little longer. Futures contracts indicated that United States markets would open still higher on Thursday.After six days of losses, stocks in the United States rose about 4 percent on Wednesday after William C. Dudley, president of the Federal Reserve Bank of New York, suggested that the cheap money that has lifted markets might flow a little longer. Futures contracts indicated that United States markets would open still higher on Thursday.
At a news briefing in New York, Mr. Dudley, who is also vice chairman of the Federal Open Market Committee, which sets interest rates, said that the recent turmoil in the global financial markets was a risk to the United States economy. He added that he found the prospect of raising interest rates next month “less compelling.”At a news briefing in New York, Mr. Dudley, who is also vice chairman of the Federal Open Market Committee, which sets interest rates, said that the recent turmoil in the global financial markets was a risk to the United States economy. He added that he found the prospect of raising interest rates next month “less compelling.”
Investors will be watching the annual conference for monetary policy makers in Jackson Hole, Wyo., which opens on Thursday and may give more of an indication on the Fed’s position on raising rates. Stanley Fischer, the Fed’s vice chairman, is scheduled to speak on Saturday.Investors will be watching the annual conference for monetary policy makers in Jackson Hole, Wyo., which opens on Thursday and may give more of an indication on the Fed’s position on raising rates. Stanley Fischer, the Fed’s vice chairman, is scheduled to speak on Saturday.
Lim Say Boon, the chief investment officer for DBS Bank in Singapore, questioned any optimism over maintaining interest rates at their current low level.Lim Say Boon, the chief investment officer for DBS Bank in Singapore, questioned any optimism over maintaining interest rates at their current low level.
“If markets are unhappy about a September rate hike, would they be happy with a December hike?” he wrote in an analyst note on Thursday. “I am not sure what ‘victory’ would look like for those in the market who are ‘rioting’ against a rate hike in September. There is also a risk of the Fed being seen as hostage to an angry mob in the market — cowed because the mob is smashing up the ‘furniture.’ ”“If markets are unhappy about a September rate hike, would they be happy with a December hike?” he wrote in an analyst note on Thursday. “I am not sure what ‘victory’ would look like for those in the market who are ‘rioting’ against a rate hike in September. There is also a risk of the Fed being seen as hostage to an angry mob in the market — cowed because the mob is smashing up the ‘furniture.’ ”
A late-day sell-off in Europe on Wednesday meant that shares in that region missed the rally, finishing the day down almost 1.5 percent.
Currencies that had been under pressure, like the Taiwan dollar, the Indonesian rupiah and the Malaysian ringgit, enjoyed some partial relief on Thursday, rising modestly against the dollar. Commodities, many of which are near their lowest levels since the financial crisis, also bounced back, with oil and copper futures trading higher.Currencies that had been under pressure, like the Taiwan dollar, the Indonesian rupiah and the Malaysian ringgit, enjoyed some partial relief on Thursday, rising modestly against the dollar. Commodities, many of which are near their lowest levels since the financial crisis, also bounced back, with oil and copper futures trading higher.