Weekly Market Update

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.

To read the full update please click here

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