While the growth contraction in China appears to be moderating the economy is not at the end of this process

Livewire News

Livewire

While the growth contraction in China appears to be moderating the economy is not at the end of this process. Indeed, growth is likely to continue moderating as the Chinese authorities slow credit growth. Chinese Government moves to support growth through infrastructure spending in railways and some modest tax cuts are cushioning the impact, but it is unlikely that there will be more government stimuli or monetary policy easing unless growth moderates more. This additional slowdown is likely, but it won't be enough to spark a policy response. While a Chinese growth moderation three years ago may have sparked a sharp market reaction, in the current market climate improvements in the US and Europe (which combined are nearly four times bigger than China) are keeping investor optimism intact. Full overnight report available here: (VIEW LINK)


2 topics

Livewire News
Livewire News
Livewire

Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

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.

Comments

Sign In or Join Free to comment