News / Economy

    Worries About China, Oil Prices Trigger Global Stock Plunge

    A man is reflected on the electronic board of a securities firm in Tokyo, Jan. 15, 2016. Asian stock markets were mixed Friday as investors were reluctant to return to risky assets despite ebbing fear about the Chinese currency devaluations and Wall Stree
    A man is reflected on the electronic board of a securities firm in Tokyo, Jan. 15, 2016. Asian stock markets were mixed Friday as investors were reluctant to return to risky assets despite ebbing fear about the Chinese currency devaluations and Wall Stree
    VOA News

    Worries about China's slowing growth, further steep drops in oil prices sparked, and a disappointing report on U.S. retail sales contributed to a global stock selloff on Friday.

    The cost of a barrel of oil slid to around $29. Analysts say oil supplies already outstrip demand, and Iran is preparing to sell more crude as sanctions that have crimped its industry are lifted.

    In New York, the S&P 500 fell nearly 2.2 percent at the close, the Dow was off 2.4 percent and the NASDAQ plunged 3.1 percent.

    London’s FTSE lost nearly two percent, and Germany’s DAX and France’s CAC were off about 2.4 percent or more.

    Earlier Friday, key Asian markets fell sharply. Shanghai stocks dropped 3.5 percent to end at their lowest level in more than a year. Markets in Tokyo, Seoul and Hong Kong also closed down more than one percent.

    The slump comes after Chinese authorities reported weaker-than-expected loan data, adding to worries about the world's second largest economy.

    Chinese stocks have fluctuated wildly for months, despite efforts by Beijing to prop up the market.

     

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    by: Marcus Aurelius II from: NJ USA
    January 15, 2016 1:43 PM
    China's little spending spree since 2008 has raised its debt from 7 trillion USD to 28 trillion USD. It has about 3.5 trillion in foreign exchange and gold reserves. Its people have 21 trillion saved up. There are no social safety nets in China. Now do you think they are going to spend that money on cars, TV sets, and other discretionary purchases given what's happening there?

    What will the government do to pay those debts, confiscate everyone's private savings or just let its corrupt banking system go broke? What is China's real GDP? What is its real growth rate? If they know, they aren't telling but western economists think it is nothing like they say it is. Meanwhile it has frightened all of its neighbors with its aggression and the world's policeman has come to town. Talk about stupid.

    by: Marcus Aurelius II from: NJ USA
    January 15, 2016 11:44 AM
    You think Asia has problems now? Russia is dying on the vine. With oil under $30 bbl the Ruble has fallen to above $77 to the USD. Some analysts say if oil falls to 26 the Ruble could go to 80. Some say this could trigger a mad dash for the exits. IMO there is a very good chance Russia's economy will go into free fall. It's only asset of any real value is its foreign currency exchange in USDs. RT keeps telling its audience China will bail Russia out.

    Don't hold your breath Russia, China has huge problems of its own and its leaders are at least as stupid as Putin. Check out JingJinJi, the largest city in the history of the world under construction that will have a population of 130 million.

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