World stock markets’ current weakness reflects concerns about a serious downturn in China’s economy. The fall in global oil prices is the result of the decline in Chinese demand. The doubt is whether this fall will be a soft one or whether the government will lose control and will be unable to avoid a severe financial crisis
Most analysts think that the European stock markets, and particularly the Spanish bourse, have taken an excessive beating over the last few sessions. Now fund managers are recommending to take advantage of the recent correction to buy into these markets. In their opinion, the recovery in activity in the euro area will be accompanied by an improvement in share prices in the coming months.
Expectations for Draghi’s second QE programme were running so high that, in the end, he disappointed the markets. Investors had bet on more aggressive stimuli, so the European stock exchanges tumbled over 3% at the close (having been in positive territory mid-morning). The euro jumped to over 1,09 dollars (its biggest rise since March) and European debt registered its largest increase so far this year.
Year 2015, with all the problems and possible scenarios, will mark a new record in terms of listed companies’ earnings, exceeding the 32 billion euros registered in 2014.
By Nailene Chou Wiest via Caixin | When the authorities scapegoat a journalist because he wrote a story without official permission, they scare anyone who wants to perform policy-related reporting.
By Peter Lundgreen via Caixin | The turmoil on world financial markets has more to do with global changes that need to be noted than recent volatility in China’s stock exchange.
The adjustment is serious and is a reaction to the eruption of China’s triple bubble: credit, real estate and stock markets.
LONDON | UBS analysts | Actual reported earnings are showing strong numbers; based on reported earnings so far Q2 is one of the strongest seasons in c. 5 years.
BEIJING | July 10, 2015 | By Alberto Lebrón | Can you imagine a country capable of losing, in just three weeks, nearly five times what Greece owes the Troika? Chinese stock markets have lost ten billion yuan. In euros, that is almost one and a half billion, more than Spain’s entire GDP.
BEIJING | July 8, 2015 | Caixin | The government was slow to recognize the risks that umbrella trusts created, then acted as if the Shanghai Composite Index should set policy.