28
May
Markets rise as China comments support the euro
World stock markets put in some strong rises on Thursday,
boosted by supportive comments from China on the strength of the
euro.
The agency that manages the country's huge foreign assets said
it was not rethinking its holdings in euros.
That led to a positive day's trading and left shares in all key
markets with good gains.
London's main FTSE index was up 3.1%, France's Cac was 3.4%
higher and the German Dax was up 3.1%.
The euro also rose, to trade at $1.236, a rise of almost two
cents on the day.
At the close in New York, the Dow Jones was 2.85% higher.
Reports that China was reviewing its investments in the light of
the weakness in the eurozone gave markets a fright late on
Wednesday.
The make-up of China's estimated overseas assets of $2.5
trillion are a state secret.
Although most of them are in US dollars, a significant
proportion - estimated at $630bn (£438bn) - are thought to be
held in euros.
A sell-off from China would not only highlight the fragility of
the eurozone, but also depress the market by increasing supply at a
time of low demand.
Earlier on Thursday, Japan's main market also closed with a gain
- of 1.2%.
source: www.bbc.co.uk/news Friday
28th May 2010