We rarely talk about financial news but this one is worth mentioning! Yesterday, Hong Kong stocks suffered a huge plunge, the worst loss to start a lunar New year since 1994.
The Hang Seng Index sank almost 4% to close at 18,545. Across Asian markets, traders fled equities for safer assets over fears of further drop in oil prices, worries over the world economy, increased capital outflows from China and volatility in global equity market, among others.
As reported by SCMP, “It is not a surprise to see the stock market fell as the regional and global stock markets have been down during the Lunar New Year,” said Chow Chung Kong, chairman of Hong Kong Exchanges and Clearing.
“Chow said investors were worried about declining commodity prices, capital outflows spurred by currency fluctuations, and the impact of China’s economic slowdown on the world economy.”
Comments from Federal Reserve boss Janet Yellen, Chairwoman of the Federal Reserve Bank confirmed that the bank would not lift interest rates in the near future which put even more pressure on the dollar, while the oil prices continued to sink below $27 a barrel.
Photo courtesy of The Guardian