Concerns rise over Chinese economic slowdown

April 15, 2015

Chinese GDP data overnight has fallen to its lowest level for six years and whilst it is in line with expectations a little risk aversion has set into the markets overnight and this morning. It is the industrial production and retail sales numbers that have worried investors causing Asian stocks to decline during their session and the dollar has perked up recouping some of yesterday’s losses. Whilst many Asian stocks have been rallying for months on the prospect of further stimulus from central banks in the region, in particular the PBOC, concerns over the Chinese economy have been voiced by not only the Federal Reserve, but the IMF as well recently.

Toda’s major event is the ECB meeting and press conference at 13.30 UK time. Here investors will be keen to hear what Mario Draghi has to say about the QE program and the ECB’s thoughts on the ongoing Greece negotiations. Greek banks continue to rely heavily on the ECB for their funding and the ELA is the only thing that is preventing capital controls being imposed. The euro will be in focus throughout the conference as in the previous two ECB meetings it has declined sharply, which after all remains one of Mario Draghi’s key aims. EURUSD trades at 1.0645 at the time of writing.

These two issues focused on in today’s Outlook have the potential to cause serious problems for markets and if a Grexit occurs in conjunction with a Chinese hard landing, we could have our next market explosion on our hands.

Publication source
FxPro information  FxPro reviews

December 9, 2016
Euro slips as ECB extends QE by 9-months
The single currency was weaker after the European Central Bank decided yesterday that it would continue with its bond purchases program. The ECB extended its QE plans from March 2017 to the end of the year...
December 9, 2016
The global stock market rally
The global stock market rally, which was underpinned by further ECB stimulus measures yesterday and a rise in oil prices, continued in Asia overnight, with most markets moving higher...
December 9, 2016
Markets throw caution to the wind
Markets have thrown caution to the wind when it comes to movements as of late as once again US equities set the scene with another stellar rise, though not as big as yesterdays...

FIBO Group Rating
HYCM Rating
FOREX.com Rating
FXCM Rating
XM Rating
OANDA Rating

OptionRally Rating
Anyoption Rating
OptionBit Rating
Banc De Binary Rating
TopOption Rating
Binary Brokerz Rating