China stocks seesaw, investors jittery after big tumble
Source: AP-Excite
By KELVIN CHAN
HONG KONG (AP) — Chinese stocks seesawed on Friday as investors remained jittery a day after a sharp sell-off while other world benchmarks were uneven, as European shares slumped while Asian indexes finished higher.
KEEPING SCORE: European stocks opened lower, with France's CAC 40 losing 1.3 percent to 5,070.82. Germany's DAX shed 1.3 percent to 11,525.38. Britain's FTSE 100 dropped 0.4 percent to 7,013.43. U.S. stocks were poised to open lower. Dow futures dropped 0.4 percent to 18,059.00. Broader S&P 500 futures slipped 0.4 percent to 2,113.80.
CHINA GYRATIONS: The Shanghai stock market is increasingly volatile after soaring more than 120 percent in the past year. Among the reasons cited by analysts and state media for Thursday's sell-off were stricter margin lending requirements by brokers; a Chinese sovereign wealth fund dumping shares in two state banks; the central bank draining liquidity from the market; and a wave of initial share offerings expected next week that will compete for Chinese investors' money.
ANALYST VIEW: The China "selling may just continue for a few days, as the scramble for the exit door intensifies," Nicholas Teo of CMC Markets in Singapore said in a commentary. He said the market is facing a "liquidity drain" due to a heavy calendar on IPOs next week.
FULL story at link.
FILE - This Monday, July 15, 2013 file photo shows the American flag and Wall Street street sign outside the New York Stock Exchange, in New York. Stocks are moderately lower in early trading Thursday, May 28, 2015, a day after the Nasdaq composite closed at a record high. (AP Photo/Mark Lennihan, File)
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