Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

China Attempting To Reign In Speculative Buying Across Its Economy

ByRichard Rhodes
Published 07/08/2013, 02:03 AM
Updated 07/09/2023, 06:31 AM
STRATEGY:

The S&P 500 remains above the 160-wma long-term support level at 1333. The standard 200-dma support level is at 1511. Perhaps more importantly, the distance above the 160-wma has has now faltered below the +23% “bubble-like rally” threshold. This is definitely a warning sign, given that 1600 was violated to the downside.

China’s Shanghi Index
Asian bourses closed sharply lower on Monday, whereas European bourses are trading sharply higher at the time of writing. The reason for this dichotomy is that China is in the process of “no priming the pump” in her economy, attempting to reign in speculative buying across the Chinese economy. In Europe, however, the ECB last week followed the Fed’s rhetoric of telling the markets they intend on “keeping interest rates low for an extended period of time.”

This is a change in tenor for the ECB, and it is giving rise to “risk-taking” across the investment landscape. We believe this comment was in reaction to the fact European bond yields were rising sharply across the European landscape, especially in southern peripheral countries such as Spain, Italy and Portugal. Previously, Draghi’s comments that European policy-makers were willing to do anything to preserve the Euro allowed the ECB to jawbone bond yields lower. This is exactly what is planned for now, and so far the markets are following his Pavloavian lead.

To Read the Entire Report Please Click on the pdf File Below.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.