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What is China up to now

Shane Oliver, Head of Investment Strategy and Chief Economist.


The attached note looks at the recent volatility in the Chinese share market.


Key points: 


  • Just as the rise in Chinese shares had little economic impact it's hard to see the pullback having a significant economic impact either.
     
  • Chinese economic growth is likely to remain "around 7%" with monetary and fiscal easing helping.
     
  • The volatility in Chinese shares represents a necessary correction. Large cap shares are not expensive.
     
  • The main dampener on commodity prices - and Australia's terms of trade - is not China, but supply






Posted by Christina Cabrera on Thursday, July 16, 2015

Greece After the No Vote




Shane Oliver, Head of Investment Strategy and Chief Economist comments on the implications of the No vote in Greece's weekend referendum. 


Key points:  


The Greek No vote means more uncertainty ahead regarding Greece, with significantly heightened risk of a Greek exit from the Euro.
 
The threat of a flow on to other Eurozone countries is likely to keep markets on edge in the short term. However, contagion is likely to be limited as the rest of Europe is now in far stronger shape than was the case in the 2010-12 Eurozone crisis and defence mechanisms against contagion are now stronger.
 
As a result we don't see the Greek debacle derailing the European or global economic recoveries. So while the correction in shares looks like it might go further in the short term, the broad rising trend in markets is likely to continue.




Posted by Christina Cabrera on Monday, July 06, 2015

Is the Euro crisis back again

Feels like we are back to square one with Europe and their whoes

AMP's Shane Oliver's article sheds some light on this. 

Read the article here



Posted by Christina Cabrera on Thursday, January 29, 2015

Thursday thoughts

Is your money working harder than you/



Posted by Christina Cabrera on Thursday, September 05, 2013


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