Global Biz

Wall Street falls after China raises reserve ratio

(Xinhua)
Updated: 2010-02-13 10:18
Large Medium Small

NEW YORK: Wall Street was off previous lows but still mired in negative territory on Friday after China's central bank decided to raise its reserve ratio requirements.

Related readings:
 Wall Street falls after China raises reserve ratio Central bank raises 0.5% reserve deposit ratio
Wall Street falls after China raises reserve ratio Rare earth reserve approved
Wall Street falls after China raises reserve ratio Chinese company to implement Baotou's rare earth reserve plan
Wall Street falls after China raises reserve ratio CNPC accelerates commercial oil reserve construction
The US stocks opened sharply lower as the People's Bank of China announced on its website that it has raised the reserve requirement ratio for depository financial institutions by 0.5 percentage points, the second such action this year.

Although most analysts believe that it's the right thing for China to do to prevent the economy from overheating, it still raised worries among investors that China's economic growth might slow down.

Meanwhile, a government report showed a stronger sign of recovery in retail sector in the United States, but it provided little help to lift the market.

According to the Commerce Department, retail sales increased 0. 5 percent in January from an upwardly revised 0.1-percent decrease, better than economists' expectation. The data were originally scheduled for release on Thursday, but were delayed because of the snow storm in Washington.

The Dow Jones fell 86.38, or 0.85 percent, to 10,057.81. The Standard & Poor's 500 index lost 7.05, or 0.65 percent, to 1,071. 42 and the Nasdaq was down 4.92, or 0.23 percent, to 2,172.49.
Specials
Columnists
China Daily E-paper