News this past week
- Mixed economic data out of the US
- Sterling slumps to 7-year low
- Euro area deflation returns
- Chinese stocks fall 6.1% on Thursday
- PBoC: monetary policy not yet exhausted
James Klempster, CFA shares his view:
Despite being hosted in Shanghai, the weekend’s G20 meeting did little to buoy confidence surrounding the Chinese economy; as a result the Shanghai market fell 2.9% lower today. This resulted in the bourse finishing February with a return of -1.8%, which comes hot on the heels of January’s 23% drop. The Chinese currency also continues to weaken with today representing the seventh consecutive day of falls. China and their contemporaries in the Emerging Markets index have come under pressure as a result of three key factors, falling commodity prices, insipid corporate profits and a relentlessly strengthening US dollar. The consensus is not totally negative on these markets, however.