Here are three separate views on threats to equity markets in 2014, China is emerging as the consistent theme on this front

James Marlay

Livewire Markets

Here are three separate views on threats to equity markets in 2014, China is emerging as the consistent theme on this front. Firstly, Ord Minnett gives these scenarios worth monitoring closely. 1) Expectations of earlier rate rises from the Federal Reserve. 2) A Chinese credit crisis and 3) falling eurozone inflation. Matt Sherwood, Head of Investment Research at Perpetual, says the largest risk for global activity in 2014 seems to be emanating out of China. Sherwood says If credit is expanding this fast and all you are getting is a +7.5% return, the lending standards would appear to not be of the highest standard. The third view comes from Macquarie Research adding further weight to China credit concerns. Macquarie notes that China's onshore corporate bond market experienced its first default on 4 March. Credit risks could be a major growth headwind in 2014.


MORE ON



2 topics

Co Founder
Livewire Markets

Livewire is Australia’s #1 website for expert investment analysis. We work with leading investment professionals to deliver curated content that helps investors make confident and informed decisions. Safe investing and thanks for reading Livewire.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.