Slowing China surfaces as market's latest worry
CHINA has not really featured as a major driving force for equity markets for many months - instead, investors have been obsessed by US Federal Reserve tapering for about nine months now - but the health of the Chinese economy this week suddenly became a key factor when news of an unexpected factory output contraction sent markets all over the world tumbling.
The Straits Times Index had been suffering from weak liquidity and demand when the China news hit, so combined with a 24.25-point loss yesterday, the index registered a decline of 72 points or 2.3 per cent for the week to 3,075.99. Year-to-date, the index has lost 92 points or 2.9 per cent.
Turnover on Wednesday and Thursday picked up to around $1.3 billion but business yesterday fell back slightly to $1.1 billion, still above the daily average of $900 million since the start of the year.
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