Europe has opened flat, US futures are in the red, and Asian shares fell meaningfully on — surprise surprise — fears that the central government would act to cool the bubble.
Bloomberg: Asian stocks declined, led by Chinese developers, on speculation China will curb land speculation. Oil and copper rose, and the Australian dollar fell after the central bank damped expectations for higher loan rates.
The MSCI Asia Pacific Index fell 0.6 per cent to 119.75 at 5 p.m. Tokyo time. The Dow Jones Euro Stoxx 50 rose 0.2 per cent to 2,891.25 at 8 a.m. in London. U.S. stock futures were little changed. Oil snapped a nine-day losing streak, the longest in eight years, as prices below $70 a barrel triggered purchases that sent crude up 0.6 per cent to $69.89 a barrel. Copper for delivery in three months in London rose 0.5 per cent to $6,945 a metric ton. The Aussie fell 0.4 per cent versus the dollar and declined against all 16 of its counterparts.
The Chinese government will target “excessive” property price increases in some cities, the state-owned Xinhua News Agency said. Separately, rising Chinese demand may boost metals prices next year, Roger Agnelli, the chief executive officer of Vale SA, the world’s largest iron ore producer, said yesterday.
Look back at everytime the Chinese stock market has fallen in the last year, and this is probably the reason, or some variation of this, and yet it never happens. That’s not saying it won’t, just that it typically doesn’t.
Business Insider Emails & Alerts
Site highlights each day to your inbox.