China cut its holdings of Treasury notes and bonds by the most ever in June, favouring the debt of Europe, Japan and Korea.

It shows that not only Europe who is encouraging the tests of banks but also China showed her total support for such action adding the worst scenarios.

The dollar was uncertain versus other majors on Monday amid a quit day of fundamental data.

Chinese built home prices are expected to drop all over the cities; on the drop list we have Beijing, Shanghai, and Shenzhen among other large cities.

China relaxed constraints on the Yuan, sending the currency to a five-year high against the dollar and rising expectations of higher demand from Chinese consumers.

Gold futures struggled to retain gains in Monday as investors quit safe-haven investments in favour of other instruments.

During the time in which the E.U. and the U.S. are assuring that they are far away from any inflationary threats, here comes China with a new release that the Chinese inflation rose to a 19-month high in May.

After some evidences that the recession is most likely over, every country started to find suitable rules and regulations to avoid such financial crisis is the future and to find new sources of growth.

It seems that all the fears and uncertainty in the market are not enough for China, which decided to add more to the situation by mentioning that it might consider reviewing its holding of the European assets and then denying any selling actions.

During the time when most economies around the world report stable inflation readings with world’s economic leaders are claiming that inflation is still under the targeted ranges, here comes China reporting a roaring inflation.