Investment Markets Overview — W/E 31th July 2015

We can close it and re-open it later,” said Deng Xiaoping, China’s great reformer, when alluding to the volatile Chinese stock-market in 1992, after it advanced by 275% in one quarter only to collapse by 73% over the next couple and ending the period effectively unchanged. Fast-forward by 23-years and the current authorities are trying to pull the same stunt after the Shanghai composite, the nation’s flag-ship stock-index soared by 180% over the two-years to mid-June 2015, before losing half of the gain in a short few trading weeks. Thus far the Chinese authorities have banned share sales by large shareholders; suspended IPOs; stopped trading in over 1400 shares and forced financial institutions to buy shares, whilst threatening to buy shares themselves (on behalf of the Chinese tax-payer of course as the government doesn’t have any of its own.) The government actually initiated a $483BN margin-buying programme and to date has committed about $800BN worth of public and private money in its effort to halt the crisis, substantially more than the $590BN stimulus package announced in 2008 and which equates to about 10% of last year’s China GDP.

31 July 2015

Subscribe to the Full Investment Markets Overview Newsletter which contains the following:-

Additional Commentaries:
•US economic data . . .
•Euro-Zone . . .
•The UK . . .
•Out East . . .
•The $US index . . .
•Within the commodities complex . . .
•Economic data due next week includes . . .

 Following UK Chancellor George Osborne’s announcement in June, that he plans to sell the The Royal Bank of Scotland back to private investors ……

Charts:
1.  Indices Weekly
2. US Emplyment Cost Index V US GDP
3. UK Consumer Credit V UK GDP
4. Japan CPI V Japan Retail Sales
5. Commodity YTD  Moves

Table:

13 Indices, 11 columns of detailed information, for accurate analysis

“One Rule for One and One Rule….

Click Here to view Details of the full version of this Newsletter which includes full text and detailed

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