SHANGHAI, Jul. 28 (SMM) – China’s stocks markets plunged Monday, growing shorts. Concerns over China’s economic outlook weighed down commodity prices. Crude oil prices dipped to a four-month low. Base metals prices plummeted across the board except for tin. Despite upbeat economic indicators from the US, the US dollar index dropped to a two-week low. This failed to boost commodity prices but lent a support to the latter.
China’s A-share market tumbled 8.5%, its largest daily decline in eight years. This allowed European and US stocks to slump in response, increasing short in the market.
The Fed’s policy meeting to be held July 29 is the focus of markets. US durable goods orders in June rose 3.4% MoM, better than the average 2.6% growth expected by economists, thanks to strong growth in commercial aircraft orders. But this failed to bolster the US dollar.
Global stocks markets fell across the boards, weighing on precious metals. LME base metals prices opened low except for tin.