2015-08-26 09:48:03
China's Shanghai Composite index seesawed between gains and losses early Wednesday, mirroring the dramatic U.S. trading session overnight as news of fresh interest rate cuts failed to abate worries surrounding the world's second largest economy.
The People's Bank of China (PBOC) fired a double-barreled easing shot late Tuesday, by lowering interest rates and the reserve requirement ratio (RRR) by 25 basis points, on the back of a brutal multi-day sell-off in its domestic equity markets that has sent shockwaves around the world. Prior to the market open, a statement from China's securities regulator said transaction fees on stock index futures trading will be raised.
Martin Lakos, division director at Macquarie Private Wealth, told CNBC early Wednesday that market volatility in China was likely to continue in the very short term. But he added that Macquarie expected the country to make a U-shaped economic recovery, with more RRR cuts in the fourth-quarter.
"We're not overly concerned about the pace of growth," he said.
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Overnight, the blue-chip Dow Jones Industrial Average and S&P 500 finished about 1.3 percent lower after rallying near 3 percent earlier, marking their biggest reversal to the downside since October 2008. The S&P 500 remained in correction territory.