Jul 10
12
China’s economy fears falling confidence
International Stock Market Report 12th July 2010
The Dow Jones, gained 59 points to close at 10,198. The Nasdaq closed 21 points higher at 2,196. The S&P 500 rose 7 points to 1,077. The Nikkei dropped 0.4% or 37.21 points to close at 9,548.11. The Topix lost 0.4 % to close at 857.70
Yesterday, reports suggested that the most dramatic stress scenario being applied to European banks predicts write-downs of 2.3% on German government bonds, 20% on the Greek sovereign debt and between approximately 5 and 11% for other periphery Eurozone countries such as Portugal and Italy. The “shock” scenario, would only take into account sovereign turbulence as it applied to banks’ short-term trading books, but would not take into account longer-term holdings. Today, European finance ministers will meet as concerns mount over the rigour of the stress-testing being applied to 91 of the region’s most important banks. There has been faltering confidence in China which could threaten the plans of the country’s banks to shore up capital reserves, the head of China Construction Bank, has warned.
Due for release today is the GBP Final GDP q/q, USD Fed Chairman Bernanke Speaks and CAD BOC Business Outlook Survey.
