Not-so-happy new year for global markets

Markets in turmoilMarkets in turmoil as World Economic Forum ends

As 2016 gets underway, global markets are already experiencing turmoil. Markets in Europe and the US endured some of their steepest losses for decades in the first few days of the New Year, sparked by fears over continued problems in the Chinese economy where trading was temporarily suspended to try to stem the haemorrhaging yuan. Many markets seem to be edging dangerously close to ‘bear’ territory – indicating a fall of 20% or more from their most recent peak. Read more…

US economic recovery slows

Economic slowdown New figures show the US economy slowed at the end of 2015

Fresh Commerce Department figures show that the US economy slowed significantly in the final three months of 2015 amid signs of a global economic slowdown. Spending by businesses and customers alike was cut and US exports reduced. The disappointing 0.7% growth rate raises concerns about the resilience of the US economy against the backdrop of global stock market turmoil which, in turn, is fed by fears of continued economic slowdown in China and plummeting oil prices. Read more…

No upturn in sight for Chinese economy

China’s economy shows no signs of recovery China’s economy shows no signs of recovery

Chinese manufacturing activity fell to a six-year low as China’s president defended his government’s stock market intervention during his recent state visit to the US. Xi Jinping claimed that although the economy was experiencing difficulties, it was on the road to recovery. International concern remains, though, as evidence of the country’s economic slump was seen in a dip in average annual growth rate to around 7.4% – with IMF forecasts standing at 6.8% for next year. Read more…

China stock market in freefall

$3tn wiped off value of Chinese shares$3tn wiped of the value of shares

The Shanghai composite index has plummeted by 6% as panic selling continues to wipe trillions of dollars off the value of Chinese-listed companies. Despite the government’s efforts to stem the tide by relaxing borrowing rules and cutting fees, shares have dropped to less than a third of their June peak. Read more…