Financial Markets Plunge as China Steps Up Tightening

Financial markets tumbled as China surprisingly tightened by raising the benchmark deposit and lending rates by +25 bps. Risk appetite slumped as China, the biggest growth driver, stepped up to process to curb growth. The market sentiment worsened after receiving a dovish BOC statement and mixed US housing data. Although several Fed presidents spoke yesterday supporting further quantitative easing, the dollar continued to rebound, sending commodities lower.

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Financial Markets Plunge as China Steps Up Tightening