Global financial markets continue to be covered by high volatility, stock prices move widely, which encourages investors to seek greater security in government bonds, writes Financial Times. Problems in August caused by concerns about the Chinese economy and the stock market crash in the country and uncertainty when the Federal Reserve will raise interest rates in the US, showed no signs of fading.
Experience Beijing to restore confidence by easing late Tuesday seemed to fail. Decisions of the Chinese central bank to cut interest rates and increase the reserves of the banks did not achieve the desired immediate effect, but only managed to limit the sharp fall of the indices in the country. European markets opened in red territory on Wednesday, while those in the US last night closed with a decline, although trade began with the growth of the major indexes.
On Wednesday, the leading Chinese index Shanghai Composite (SCi) initially fell 3.8 percent, increasing five-day losses to 24.9 percent. In the afternoon session the mood improved and the index rose by 4.3%, which in turn helped other markets in Asia. But new sales at the end of the session led to a decline of 1.3% SCI and it closed at its lowest level since December.
The negative end of trade in China had no effect on the Japanese Nikkei 225 index, which after a decrease of 4% on Tuesday to recover with growth of 3% on Wednesday. Hoping that the loosening of the monetary policy of Beijing can lead to greater demand for raw materials led to the growth of S & P / ASX 200 in Sydney by 0.7%.