Is the China Nightmare Finally Over?
It seems as if the dark cloud that is China may finally be starting to break.
A Bloomberg report suggests that China’s economic downturn isn’t going to last as long as the experts thought, and everything from stocks and bonds, to commodities and the Forex, responded in a big way.
Shane Oliver, head of investment strategy at Sydney-based AMP Capital Investors Ltd, said, “Economic indicators are going in the right direction and there’s more evidence that Chinese stimulus measures are positively impacting the economy. The fundamental factors that were driving concerns earlier this year seem to have faded.”
This is good news for not only the U.S.’s economy, but also for the rest of the world. Just look at how the world responded at even the hint of a bullish Chinese market:
Stocks in London rose two percent and are looking for their longest winning streak in almost a month; The Asia Pacific Index’s rise almost hit two percent, and it’s still looking to close at its highest number in three months; Two of the Chinese index’s combined to jump almost six percent. In fact, no world market or index suffered a loss with this news.
The U.S. dollar remains strong over Japan as the Yen weakened against the dollar by .8 percent. Japan’s economy continues to be weak and commodity prices don’t seem to be rising.
The U.S. dollar appreciated against the Euro as well. This shows a confidence in the United State’s economic growth. San Francisco Federal Reserve President John Williams expects the Fed to increase interest rates this year after hovering towards zero since the end of 2015
Now is the Time to Act
The Chinese market has had a stranglehold on the world economy for months now. Traders were worried that without a strong China, the world economy would suffer (looks like they were right). Now that the Chinese bear is beginning to wake, the market is becoming more volatile, and money can be made.
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