Jan 08, 2016
By Jane Brown
Some calm has returned to the Asian financial markets after yesterday’s sharp drops that originated in China.
The Shanghai Composite Index was up about two per cent today.
In Japan, the Nikkei Index dipped four-10ths of one per cent, while the Hang Seng Index in Hong Kong was up almost one per cent.
Markets were also up in Europe on the final day of the trading week.
Stocks have been fluctuating in China since regulators lifted a safety mechanism meant to stabilize markets but in fact made them more volatile.
“The circuit breaker and what’s happening day to day is noise. You want to back up and say, ‘what’s happening with the economy, what’s the Chinese economy doing that’s going to power what’s happening in the world.’ We are seeing a slowdown in manufacturing, absolutely, and we are seeing a slowdown in growth, but there still is growth there, but you know, the day to day stuff, which catches headlines is probably not the thing we want to watch on a long term basis,” TD Wealth Management’s Kim Parlee explains to Zoomer Radio.
After yesterday, global markets had lost $2.5 trillion in the previous four days, the worst start to a calendar year since the dot-com meltdown in 2000.