Global Economic Crisis

The Chinese stocks fell to their lowest yesterday, dragging the country’s Benchmark index to the lowest level in more than a year. This recent fall is mainly because of the U.S. economy’s sluggish growth and the European Debt crisis along with the added pressure of Chinese tightening of its business policies.
Many of the nation’s largest companies whose dealings are mainly with the U.S. and European markets plunged by about 2.5 percent. The Shanghai index has dropped more than 22 percent this year and seems to be on a downward spiral making it the worst of Asia’s indexes. Many investors feared that this might continue and expressed the lack of visibility in the market and expect a double dip recession in the coming months.
The European crisis will make china to take the decision to delay revaluation of its currency and delay borrowing costs therefore leading to more tightening measures. It all depends on the measures taken in the European market to stop the global recession once more and the Chinese are watching with their fingers crossed.

This entry was posted on Friday, May 21st, 2010 at 2:44 am and is filed under Economy, Global Financial Crisis, Recession. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.