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World Market Tumbles on Worries that China Rate Hike May Soon Materialize

Selloff of risky assets accelerated as comments by China’s Premier Wen Jiabao and PBOC Governor Zhou Xiaochuan heightened speculations for a rate hike. In Europe, the focus remained on a possible bailout for Ireland. News said European finance ministers have begun to work on possible assistance for Ireland. Yet, Finance Minister Brian Lenihan said a bailout is ‘not inevitable’ and the government has ‘not committed to enter a facility, but there are serious market disturbances’.

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World Market Tumbles on Worries that China Rate Hike May Soon Materialize

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