Asia spooked by China steps/US earnings continue to rock

Asian stocks across the board traded lower led by anything property and construction related in response to yesterday’s move by Chinese officials to raise down payment requirements on 2nd homes to 50% from 40% and said interest rates on these loans have to be at least 110% of benchmark rates. Fixed asset investment has been enormous in China and has been the main source of growth that was fed by the huge stimulus plan put in place in late ’08. US earnings continue to be great with GE overcoming a revenue miss, BAC far exceeding both revenue and earnings estimates and GOOG still seeing strong growth (stock lower but just back to last Friday’s close). Bonds in Greece and Portugal are lower again and the euro is at a one week low vs the US$ as investors are truly losing patience with the Greek situation. US consumer confidence and housing starts are out today.

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