SHANGHAI, Aug. 11 (SMM) – China’s A-share market surged on Monday. Fed’s Vice Chairman Stanley Fischer’s dovish statement, combined with selloff of the US dollar from easing Greek crisis, weighed on the US dollar index. Crude oil prices rose on a weakening US dollar, growing imports by China, breakdown of oil equipment in UK and rumors that the OPEC will hold an emergency meeting. Base metals prices thus rebounded.
China’s A-share market soared to 3,900, touching as high as 3,943; the Growth Enterprise Market surged 5.8%, reaching as high as 2,726. Market sentiment got a boost, and additional stimulus measures from China are expected.
Fed Vice Chairman Stanley Fischer emphasized strong recovery in the US and low inflation rate. US is now near adequate employment, but the inflation rate is very low. The low crude oil price is blamed for the low rate. Greece is expected to remain in the eurozone after receiving additional EUR 86 bailout fund, which will allow the country to repay EUR 3.5 to the European CENTRAL Bank August 20. This drove up the EUR:USD to a six-day high of 1.1000, while the US dollar retreated 0.45%.
Crude oil prices jumped 4%. The OPEC will reportedly hold an emergency meeting to support crude oil prices. Besides, China’s crude oil imports leapt over 10% to 194 million bbl, pushing up crude oil prices.
Global stocks markets mostly increased. Gold prices were up 0.94%. LME base metals prices increased across the board.