Asian Stocks on Shaky Ground, Reflecting Nervous Markets

By: CNBC.com | 21 Jun 2009 | 08:20 PM ET

Asian markets open the Monday session on shaky ground as investors become increasingly nervous the recent market rally may have been overdone.

The main Wall Street indices were mixed on Friday, with the tech-rich Nasdaq gaining 1.1 percent and the S&P 500 up 0.3 percent, while the Dow dipped 0.2 percent. U.S. stocks lost ground for the week for the first time in five weeks.

Current DateTime: 05:22:01 21 Jun 2009
Attention is set to turn to this week's Federal Reserve interest rate meeting, starting on Tuesday. No rate change is expected though investors will be alert to any clues on how long the Fed expects to keep rates low.

Experts: Oil price may hike again in late June

By Hu Yang (chinadaily.com.cn)
Updated: 2009-06-19 18:03

China's top economic planner could raise the prices of refined oil products as early as late June as the international crude price hits over $70 a barrel while the domestic oil price is only equivalent to $50 a barrel, experts have said.

According to a new oil pricing mechanism introduced by the National Development and Reform Commission (NDRC) in May, China will adjust domestic fuel prices when global crude prices see a daily fluctuation band of more than 4 percent for 22 working days in a row. There have been two such price hikes this year.

Yin Xiaodong, an analyst with CITIC Securities, told China Securities Journal that domestic oil prices were likely to be raised by the end of June, given the fast rebound of international crude price recently.

Hao Yanfei, an analyst with the State Information Center said another adjustment is likely but the exact date and details are hard to predict, for the NDRC would not like predictable oil price changes.

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But a source from China's largest refiner Sinopec Corp told the newspaper that an imminent price hike of refined oil products is unlikely to happen as China's economy is recovering and authorities may want to postpone such adjustment. He said authorities will also take interests of farmer, energy and transportation industries into consideration.

An NDRC official said China's oil price will fluctuate in accordance with the international trends, but adjustments should not be too frequent.

Personal Comment : Of course a rise in oil prices will mean increased inflation wich could slow down recovery and domestic consumption . Tec

The week ahead in review, as usual never a doll moment in Patti Domm's coverage of the week ahead, an interesting reading . Tec

Published: Sunday, 21 Jun 2009 | 10:20 AM ET

By: Patti Domm
Executive Editor

US Market Insider: Eye on Fed Meeting, Treasury Auction