Tuesday, November 23, 2010

AND NOW BACK TO YOUR REGULARLY SCHEDULED CHINESE MARKET CRASH

China is leading the way lower overnight as artillery fire is exchanged in South Korea and fresh worries about inflation lead to further risk aversion.? Stocks in Shanghai closed down by 2% as rumors of a halt in mortgage lending lead investors to wonder if the government doesn’t see something substantially worse than previously believed (via Trade The News):

“Asian equity markets are in full retreat, as the positive tone set in the region overnight proved unsustainable in Europe and US sessions. Despite the confirmation of Irish bailout and a less severe than expected RRR PBoC tightening out of China, the focus of the bond markets appears to have shifted to Portugal and Spain, forcing local finance ministers to defend the progress made in meeting deficit reduction targets. Moreover, the bailout has hardly proven agreeable to the Irish labor, as waves of protests and calls for resignation of PM Cowen have forced the prime minister to plan an early national elections, with December budget serving as referendum for the ruling party. In China, Shanghai Composite is entering final hour of trade down over 2%. Financials and insurance companies are leading the slump after China Daily reported China Banking Regulatory Commission (CBRC) may have forced largest trust companies to halt mortgage lending.”

In Korea there are reports of an attack on a South Korean island (WSJ):

“North Korea fired artillery at South Korea’s Yeonpyeong island in the Yellow Sea off the countries’ west coast Tuesday afternoon, setting houses on fire. South Korea returned fire, according to residents on the island speaking on South Korea’s YTN television network.

A spokesman for South Korea’s joint chief of staff confirmed the exchange but didn’t have details except to say “scores of rounds” were fired by the North.

The artillery—more than 50 rounds, according to island residents speaking on YTN—was fired from positions south of the North Korean city of Haeju.”

And all this time you might have expected the bombs to go off in Ireland.? Financial hardship is leading to tensions in North Korea as well though this region of the world has become largely forgotten in recent weeks as the Euro crisis unfolds.? Never a dull moment during this financial crisis….I’ve been sincerely hoping none of this would lead to mass violence.? Let’s hope this is a false alarm.

——————————————————————————————————————————————————

The content on this site is provided as general information only and should not be taken as investment advice. All site content shall not be construed as a recommendation to buy or sell any security or financial product, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of firms affiliated with the author(s). The opinions of all guest authors or contributors can and will differ from those of Mr. Roche. These opinions do not necessarily represent the opinions or investment decisions of Mr. Roche. The author(s) may or may not have a position in any security referenced herein and may or may not seek to do business with one another or companies mentioned via this website. Any action that you take as a result of information or analysis on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.

A brief note on comments – The increase in users in recent months has resulted in an increase in unproductive comments. Any user who engages in the use of racial epithets or uses the comment section as a place to insult other users will be banned from the site. The comment section is welcome to all readers who are interested in asking pertinent questions and/or engaging in thoughtful, intelligent, and productive debate. In short, just be nice. Thanks.

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php
Five Filters featured article: Beyond Hiroshima - The Non-Reporting of Falluja's Cancer Catastrophe.


View the original article here

No comments:

Post a Comment