MarketSaga

Saga of Financial Markets

Fri12152017

Last updateSat, 29 Jul 2017 12am

Back You are here: Home Blog Blog Update On the Markets

The Chinese power in the financial markets

2012-04-16, China announced that it is relaxing the renminbi’s (RMB) trading band to 1% either side of a daily fixed rate, double the previous limit.  The move is another step in China’s gradual currency liberalisation and internationalising the RMB  after it tripled the amount of foreign institutions can invest in its capital markets.  Increasingly, we are beginning to see and feel the Chinese influencing in the financial markets.

Add a comment

Read more: The Chinese power in the financial markets

World Market performance since March 2009

March 2009 was the bottom.  After the Fed announced quantitative easing (QE1), almost all the indices moved in tandem.  How those indices have performed since the bottom in March 2009 to 1Q 2012?

Add a comment

Read more: World Market performance since March 2009

Latin America Outlook 2012

According to Citigroup, the nine previous rallies in Latin America during the past decade averaged a dance floor-clearing 60% and last 26 weeks.  Thereafter it would normally followed by a 20% or so correction before the next surge upward.

Add a comment

Read more: Latin America Outlook 2012

China: cheap and a good buy

Fund Managers:  Schroders - which oversees $291 billion,  RCM (a unit of Allianz Global) - which manages US$138 billion and GLG Partners – with AUM of $26 billion are positive on China and starting to accumulate Chinese equities as they believe that the valuations are the lowest since 2005 and that China should avoid a hard landing.

Add a comment

Read more: China: cheap and a good buy

3 Scenarios for 2011

Financial Time’s Lex plotted out 3 possible scenarios for 2011: The Crab (70% chance); Disaster (20% chance) and Lift-off (10% chance).  Accordingly, the critical variables are the US bond market (that’s where the monies are ‘parked’) and the Chinese economy.

Add a comment

Read more: 3 Scenarios for 2011