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31 Aug 2015
China abandons equity-buying stance, catalyst for risk aversion wave?
FXStreet (Bali) - The Financial Times has published, in its front page, news that China's government has decided to abandon attempts to boost the stock market through large-scale share purchases.
The FT adds: "China will instead intensify efforts to find and punish those suspected of "destabilising the market", according to senior officials on China's stock market."
AUD/JPY, a key risk barometer for risk sentiment, is down 0.85%, while S&P500 futures are down 1.3%. Some market chatter seems to be attributing China's changing stance on buying stocks as the possible catalyst fueling the sell-off in the S&P500 futures.
The FT adds: "China will instead intensify efforts to find and punish those suspected of "destabilising the market", according to senior officials on China's stock market."
AUD/JPY, a key risk barometer for risk sentiment, is down 0.85%, while S&P500 futures are down 1.3%. Some market chatter seems to be attributing China's changing stance on buying stocks as the possible catalyst fueling the sell-off in the S&P500 futures.