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GLOBAL MARKETS-China falls drag bonds behind into red


(Adds Wall Street, updates prices)

* Shanghai dives again, European bonds mixed

* Broader converging forward of U.S. Fed assembly Thursday

* Oil nails behind some ground, Wall St seen flat

* Yen gains after BoJ takes no action

By Patrick Graham

LONDON, Sept 15 (Reuters) – Concerns over China kept
financial markets on corner on Tuesday, with an underwhelmed
reaction to new information and Beijing’s efforts during corporate
reform pulling Asian bonds reduce and gripping any gains in
Europe minimal.

Wall Street was set to open prosaic , with
investors avoiding firmer bets forward of a initial assembly of the
U.S. Federal Reserve in years during that a probable arise in
interest rates has been a live issue.

But worries about a impact of any Fed travel on dollar
borrowers opposite a building world, and a outcome on growth,
continued to dominate, with Shanghai bonds descending another 3.5
percent and Brent wanton around $46 a barrel.

“It’s all about counsel today,” pronounced Andy Sullivan, a
portfolio manager with Swiss investment organisation GL Financial Group.
“There is regard about a Fed, and a China information continuing
to be weak.”

While Tokyo inched higher, MSCI’s broadest index of
Asia-Pacific shares outward Japan erased early
gains to tumble 0.7 percent. Indices in Frankfurt and Paris were
marginally aloft while London’s categorical FTSE 100
index fell 0.1 percent.

Concerns around rising economies have dominated a past
month, though there are still reasons to be some-more bullish on a
number of grown markets.

Sullivan pronounced he was certain on European equities, which
will pull support from a European Central Bank’s debate of
quantitative easing over a subsequent year and demeanour undervalued
compared to their U.S. peers.

In Britain, while this year’s moves in oil returned headline
inflation to zero, there was zero in those numbers to further
undermine expectations that a Bank of England will follow the
Federal Reserve in lifting seductiveness rates subsequent year.
.

The Australian dollar, mostly a substitute for China on major
currency markets, was a hold lower, while iron ore and copper
prices — also mostly guided by Chinese direct — recovered from
losses in Asian time to be roughly solid on a day.

A Barclays consult showed expansion in China and other emerging
markets was now a tip regard for roughly half of investors
worldwide over a subsequent year. Less than 10 percent saw Chinese
assets as cheap, suggesting a sell-off has serve to go.

“Investors trust overcapacity is China’s categorical economic
problem and many see suggestive constructional reforms as necessary
before they could feel some-more assured about prospects,” Barclays
analysts pronounced in a report.

The yen, traditionally investors’ protected breakwater of
choice in times of turbulence, rose 0.6 percent, building on
gains after a Bank of Japan hold process solid during a finish of
its two-day meeting.

The euro gave adult about 0.5 percent to 135.39 yen,
while it was prosaic opposite a dollar during $1.1323.

(Editing by Catherine Evans)

Article source: http://www.reuters.com/article/2015/09/15/markets-global-idUSL5N11L2MU20150915

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