SHANGHAI, Jul. 9 (SMM) – Panic sentiment spread in Chinese market. Stocks and commodities all suffered heavy sell-offs Wednesday. The Shanghai Composite Index ended down 5.9% and Hang Seng Index fell 5.84%, the largest drop in seven years. All commodity futures dropped to daily limit.
As such, China’s regulators combined to stabilize market. China Securities Finance Corp has provided RMB 260 billion in credit lines to 21 brokerages to help them buy stocks via proprietary trading, the country’s securities regulator said on Wednesday. China’s securities regulator took the drastic step of ordering shareholders with stakes of more than 5 percent from selling shares for the next six months in a bid to halt a plunge in stock prices that is starting to roil global financial markets.
Greece sought from the ESM a loan facility with an availability period for three years. The Loan will be used to meet Greece’s debt obligations and to ensure stability of the financial system. Greece promised to implement tax and pension-related measures next week, easing markets worries and pushing most European stocks up.
The minutes of US Fed meeting turned out to be dovish, weakening hopes for interest rate hike. As a result, US dollar index posted a drop.
Asian and the US stocks plunged whereas most European stocks finished with gains. US dollar index declined 0.45%. LME base metals all rebounded by more than 1% expect LME aluminum.