China Shares Battered, as European Shares Hit Highs

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By Trey Thoelcke Published
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Shares in China had a rough start to the week as the Shanghai Composite Index fell below 2,000 Monday for the first time in almost six months. New data showed that factory output and business spending had slowed in the People’s Republic, and concerns about company earnings remained. In addition, efforts to curb pollution in Beijing and Shanghai prompted shares of China Shenhua Energy, the nation’s largest coal producer, to fall to a record low.

The central bank dumped more than 255 billion yuan ($42 billion) into the financial system and Asian shares rebounded somewhat Tuesday as Chinese money rates eased, reducing concerns about a credit crunch.

European shares followed Asian shares and hit fresh 5.5-year highs on Tuesday. A report indicating that the Federal Reserve would trim its bond buying next week, for the second time in six weeks, boosted the dollar, and investors will be watching to see if the European Central Bank acts Tuesday to correct a recent sharp rise in money rates that could hamper the economic recovery there.

The GDP growth rate in Europe is less than 2%, so any enthusiasm in the markets may be due expectations for the year ahead, compared to historical averages. China’s growth has been stronger, but plenty of signs suggest that it is now slowing. For the moment, Europe seems to be on the upswing while China may be in a slump.

Photo of Trey Thoelcke
About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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