Excerpt from: Stock Indices CFDs and Spread Bets
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| November 19, 2007 | | Japanese stocks down on China news | The Chinese government has told banks to slow lending, and this is causing an effect throughout Asian stock indices. Spread bets and CFDs on Japanese stocks and other Asian stocks should consider the effect that Chinese monetary policy has on the region. Bloomberg reports on the effect of the Chinese decision regarding lending:
``The Chinese government hasn't had much luck in curbing
lending with rate hikes, so now they are trying this new tack,''
said Yoshika Miyamori, a China strategist who helps oversee $8.4
billion at Nikko Asset Management Co. in Tokyo. ``If the economy
slows down that could result in a stock market slide, a
worsening of the employment situation and trouble politically.
This policy probably won't be popular with investors.'' | | |
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