News this past week
- Global equities continue to fall
- Brent crude oil dips below $30 a barrel
- Safe-haven assets rally
- Chinese trade numbers exceed expectations
- Sterling depreciates
James Klempster, CFA shares his view:
It is probably fair to say that the New Year has got off to a bad start. The year-end festivities now seem like a distant memory as markets have suffered pretty concerted selling pressure thus far in 2016. The epicentres of the current concerns are China and the continued weakness of oil. Neither of these are surprises anymore. We know that China’s growth path is going to be weaker than we had become accustomed to and there are, increasingly, questions over the relatively meagre expected growth rate of 6.5%. Furthermore, credit has grown substantially in China increasing concerns over indebtedness and the risk of a disorderly unwind if mishandled by Beijing, all while the government is giving the market mixed signals causing confusion and skittishness.