Index falls most in 2 months
By Ding Yining and Feng Jianmin |
April 20, 2011, Wednesday
|
Print Edition
Print Edition
THE Shanghai stock market yesterday dropped almost 2 percent - the most in nearly two months - as energy producers and financial shares fell on concerns over slower economic development due to the worsening European debt crisis and a possible downgrade of United States sovereign debt.
The Shanghai Composite Index sank 1.9 percent, or 58.29 points, to 2,999.04 yesterday.
In New York, the Standard & Poor's 500 Index fell 1.1 percent yesterday, its biggest retreat since March, after S&P lowered its outlook on US debt to "negative." The ratings agency said that more than two years after the beginning of the financial crisis, US policy makers haven't agreed on a strategy to reverse recent fiscal deterioration or address longer-term fiscal pressures.
Concerns for domestic economic growth also deepened amid rapid inflation and the Chinese government's tightening monetary policies.
"Global stock markets were weak as investors lowered their risk appetite on concerns about the situation in the US and Europe," said Que Feng, a strategist with CITIC Securities.
He predicted the local key index to drop to as low as 2,600 points in the second quarter.
Metal producers and oil companies fell after oil traded near a three-day low in New York on fears that a worsening economic outlook may curb demand. Jiangxi Copper Co sank 3.4 percent to 37.71 yuan. Aluminum Corp of China lost 3.9 percent to 11.23 yuan. PetroChina, the country's largest oil producer and top heavyweight in the index, fell 2 percent to 11.86 yuan. Sinopec shed 0.9 percent to 8.97 yuan.
The Shanghai Composite Index sank 1.9 percent, or 58.29 points, to 2,999.04 yesterday.
In New York, the Standard & Poor's 500 Index fell 1.1 percent yesterday, its biggest retreat since March, after S&P lowered its outlook on US debt to "negative." The ratings agency said that more than two years after the beginning of the financial crisis, US policy makers haven't agreed on a strategy to reverse recent fiscal deterioration or address longer-term fiscal pressures.
Concerns for domestic economic growth also deepened amid rapid inflation and the Chinese government's tightening monetary policies.
"Global stock markets were weak as investors lowered their risk appetite on concerns about the situation in the US and Europe," said Que Feng, a strategist with CITIC Securities.
He predicted the local key index to drop to as low as 2,600 points in the second quarter.
Metal producers and oil companies fell after oil traded near a three-day low in New York on fears that a worsening economic outlook may curb demand. Jiangxi Copper Co sank 3.4 percent to 37.71 yuan. Aluminum Corp of China lost 3.9 percent to 11.23 yuan. PetroChina, the country's largest oil producer and top heavyweight in the index, fell 2 percent to 11.86 yuan. Sinopec shed 0.9 percent to 8.97 yuan.
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