The uncertainty in the global economy has sparked further falls in shares and oil prices around the world….reports Asian Lite News
Tthe authorities intervened again on the stock market to stem the slide. But the shares in Shanghai fell 3.4%.And expectations of a US interest rate rise dimmed after the Federal Reserve said the economy was not ready yet, BBC reported.
On Wall Street, the Dow Jones index opened 1% lower, while markets in Paris and Frankfurt fell more than 2%.
London’s benchmark FTSE 100 index shed 0.56%, while the price of Brent crude oil was down 0.4% at $46.97 a barrel, although US crude recovered from earlier falls to stand 0.6% higher at $41.35.
Rate rise ‘approaching.’
On Wednesday evening, the Fed released minutes from its meeting on 28-29 July, showing that one policymaker was ready to vote for an interest rate rise at the meeting.
Overall, the Fed thought conditions for a US rate rise “were approaching”, but the economy was not ready yet.
Other policymakers remained concerned that inflation would remain weak because of the strong dollar and falling commodity prices, which act as a double depressant on imports.
The Fed’s key interest rate has been kept near zero since December 2008.
There has been speculation that the Fed will raise rates at its meeting in September, and last month Fed chair Janet Yellen said she thought a rate rise this year was likely.
The committee also cited China as a potential problem, saying that a “material slowdown” in the Chinese economy could affect the US economic outlook.