News this past week
- Global equities tumble
- China uncertainty weighs on markets
- US jobs report surprises on upside
- Price of Brent crude falls to lowest level since 2004
- Gold continues its year-to-date rally
James Klempster, CFA shares his view:
Last week China’s official sector demonstrated with unwitting eloquence the uneasy relationship between politics and the markets. Every major investment market is subject to a form of state control thanks to regulators and occasional administrative intervention, but the events in China again underline the discomfort and, arguably, inexperience of Beijing when it comes to free markets. Present criticism leveled at China’s official sector is largely dividable into two categories. The first relates to the ill-conceived and quickly scrapped ‘circuit breaker’ and the second relates to undue market influence. But interventions of this sort are not the sole preserve of China.