Stocks Tank as China Curbs Lending
(CHINA)– The U.S. stock market took a hit today on concerns that tighter lending standards in China could endanger an economic recovery. Disappointing earnings results from IBM Corp. (NYSE: IBM) and Morgan Stanley (NYSE: MS) added to the market’s problems.
Concurrently a rise in the dollar pushed commodity prices sharply lower, pounding stocks of energy companies and materials producers.
The Dow Jones industrial average fell 190 points from a 15-month high, its biggest drop since October. Demand for safe havens like government debt jumped, pushing yields lower in the Treasury market.
Concerns grew that China’s efforts to keep its economy under control could hurt a global recovery.
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