This morning: The mysterious “floor” in the Chinese stock market, a decade of negotiations over natural gas, German securities regulators worry about low interest rates, currency market manipulation, Canadian consumers revel in low interest rates.
A Wall Street Journal blog reports on the “mysterious floor” in the Chinese stock market. According to the WSJ whenever the Chinese stock market index drops below 2000 the market does not stay low for long. The thinking is that that there is “action by authorities or mysterious trading activity that keeps the index buoyant” whenever the market drops below that key number. That is, there is a limit to Beijing’s tolerance for how “far a bearish mood can extend in a market dominated by retail investors...out of fear of any political and social instability that any prolonged sell off could trigger.” Has China invented no risk investing? North Americans will remember Sprott Asset Management's issued a report a couple years ago about a so-called “Plunge Protection Force” at work in the SEC.
Read the full story.
For more Newswire stories:
Chinese Market riles investors
China and Russia strike gas deal
Real estate creating global risk
Traders attempt currency manipulation
Canadians predict higher home prices