As China raised interest rates for the second time in six weeks the oil prices are going down and making the world to worry about that the global growth will be crimped.
The Australian dollar fell and bolstered the euro, which gathered broadly on demand from Asian central banks due to China's initial move. for this raise in China's benchmark is seen of 25 points up to 3% more. It is also seen that metal has been reaching successive record highs since the beginning of February as China is from the world's biggest consumer of copper, which is often viewed as a barometer for economic conditions. But the impact from China's rate hike on other asset classes was limited. the rate hike is their in the market but it isn't the troublesome one.
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| Crude oil |
This move of China supported gold which is rose through resistance level. So, gold trimmed its gains, edging down 0.1%, or 96 cents, to USD 1362.60. But US crude oil fell 38 cent to USD 87.10 per barrel.
The US dollar fell 0.09% and edged down 0.02% against the Japanese yen but euro showed only a little change. After weeks of growth in world stock markets, investors remained focused on corporate earnings and growing merger activity, tempering the sting from the Chinese rate hike.
The Dowjones industrial average rose 71.52 points, or 0.59%, to 12,233.15.
The Standard & Poor's 500 Index gained 5.52 points, or 0.42%, to 1,324.57.
The Nasdaq Composite Index added 13.06 points, or 0.47%, to 2,797.05.
The MSCI world equity index rose 0.4%.
The occurring changes in the world indexes made worries of growing global inflation which pressured the US treasury debt prices which are at a weakened position from consecutive seven days.
