6.2%

Finweek English Edition - - IN BRIEF -

A sin­gle-day slump of 6.2% in the Shang­hai Com­pos­ite In­dex on 18 Au­gust fol­lowed by another drop of 5.1% the next day (ac­cord­ing to Bloomberg data) sent fears through global mar­kets. While the in­dex re­cov­ered again to gain 1.2%, an­a­lysts told Bloomberg that weak sen­ti­ment would re­sult in mar­kets re­main­ing un­sta­ble. It re­ported that in­vestors in main­land China re­alised that the bull mar­ket was over, and that the coun­try’s rich­est traders were “cash­ing out of stocks”. Mean­while Reuters re­ported that other Asian mar­kets saw two-year lows fol­low­ing the drop. In­vestors warned that emerg­ing mar­ket cur­ren­cies could ex­pect cap­i­tal out­flows go­ing for­ward as they faced a com­bi­na­tion of slower growth in the Chi­nese econ­omy and in­ter­est rate hikes in the US. In­dia’s big­gest air­line, IndiGo, has or­dered 250 Air­bus planes at a to­tal cost of $26.6bn, ac­cord­ing to Bloomberg. This is the Euro­pean plane maker’s big­gest air­craft or­der to date. Bloomberg in­di­cated that both Air­bus and Boe­ing forecast that Asia will be­come their big­gest mar­ket within the next two decades, a po­si­tion cur­rently held by the US.

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