Here's Why The Market's Surging: China Denies The Nonsensical rumour About It Dumping Eurozone Bonds

Euro Greek

At least officially, China is denying a report from the FT that it’s considering paring back on its Eurozone bond holdings.

That may account for the rebound in the euro, and thus the overall upward move in markets today.

Chinese officials could be lying, but as we noted yesterday, the story never made any sense. The last thing China is interested in is weakening the euro further, given that the Eurozone is its biggest export market, and its manufacturers are already get hammered by the euro fall.

Again, we’ll note all the same rumours were made during the dark days for the dollar, and they turned out to be nonsense — a good reminder not to get caught up in the prevailing moods of the day, no matter how logical.

For a quick look at global market activity, see here.

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