A look at the day ahead in US and global markets from Mike Dolan
World markets were on the rise again on Tuesday as China rallied sharply on reports of direct government intervention in jittery markets and US Treasury yields falling after a jobs-driven surge this week.
However, the early action was entirely in China, where the benchmark stock index posted its biggest one-day jump in almost two years amid growing concerns over regulatory action to halt sales, state-sponsored purchases and the top of the Politburo. . ,
Chinese stocks have suffered a sustained decline amid rising domestic deflation due to foreign capital flight, tense geopolitics and an asset crisis, causing them to underperform Wall St peers by more than 20% over the past three months, prompting the government to Is struggling. To decide.
The defeat came after Republican presidential candidate Donald Trump said this week that if he is elected in November he would reimpose tariffs on China and that they could exceed 60%.
Meanwhile, Tuesday’s surge in the local market seemed to be driven by a wave of concerns about the potential for a fall in Beijing, as the Biden administration sent five senior US Treasury officials to Beijing for economic talks this week.
According to Bloomberg, President Xi Jinping will discuss the ailing market with financial regulators. Regulators also announced further curbs on short selling and state investors said they were expanding their stockbuying plans.
Many believe the more than 3% rise in blue chips there on Tuesday was due to state-backed investors being dubbed the ‘national team’ rather than a sudden change in investor sentiment.
China’s offshore yuan surged against the easy US dollar – but the focus…