Markets


NavascuesChinaTC

De-stressing about Chinese equities

MADRID | They’ve been scaring us with an eventual China crash which would drag the world’s economy. And yet Daily Telegraph’s Roger Bootle insists there is no reason to panic here. The ratio of tradeable equities to GDP is running at just under 30%, while in most countries it exceeds 100%. See the New York Stock Exchange on the graph.



china flash PMI

China flash PMI falls to a 15 month low

HONG KONG | July 24, 2015 | Barclays | The Markit “flash” manufacturing PMI unexpectedly fell to 48.2 in July, reaching a 15-month low (consensus: 49.7; Barclays: 49.7).  The weaker PMI supports our view that the economy is not on solid footing, and we look for a flat growth profile in H2.


brent

Markets focus on EM weaknesses again

MADRID | July 23, 2015 | By Francisco López | Until just over one year ago, funds with high exposure to emerging economies were the start product. Now the trend has reversed. Investors are rolling back their positions due to the vulnerabilities that present many countries due after the fall in commodities prices, China’s economy slowdown and expectations of US Fed rates hike.


Chinese stocks

Chinese equity markets: Shaken, but not too stirred

LONDON | July 15, 2015 | BNP Paribas | The fall in the Chinese equity markets is mainly a market correction phenomenon, the most important question now is how it will transmit to the real economy. Our view is that the transmission will be muted. 



Stock Markets

Greek deal curbs volatility

The Corner | July 14, 2015 | Stocks and bonds’ behaviour will still depend on how the Greek crisis unfolds but macro and corporate results should start to gain some traction.


Icelandic krone

What Icelandic business practices can (possibly) tell us about China

LONDON | July 13, 2015 | By Sigrún Davídsdóttir | Many controlling shareholders in China have pledged shares as collateral for bank loans – this was a common practice in Iceland up to the October 2008 banking collapse. Now this practice seems to be causing share trading suspensions in China.


European H2 earnings

Financial regulation: Beyond post-2008 ‘fix’

July 11, 2015 | By Simon Zadek and Christian Thimann via Caixin | A financial system for the 21st century should account for five warning signals that have not been addressed by current policy and regulatory frameworks.