Insights / Blogs

Insights / Blogs

August 28, 2015

This Week in Review: Strong US Data Counter China Fears

For the week ended 28 August 2015
  • US Q2 GDP revised up to 3.7%
  • US housing, durable goods orders strengthen
  • US consumer spending up, inflation tame
  • China cuts rates, reserve requirements
  • Mining giant BHP Billiton falters

Market volatility spiked dramatically early this week as fears about the depth of China's economic downturn escalated. Asian markets were hit the hardest: Through Wednesday, the Shanghai Composite Index lost 26% of its value in just eight trading days. European shares were also unstable, and Japan's Nikkei 225 and US stock indices had six-day stretches of losses before rallying as strong US economic data countered worries about China's weakness.

August 25, 2015

Global Markets Hit a Rough Patch

The selloff in markets around the world appears to have a variety of catalysts. The two factors that many investors have fixated on are a slowdown in China and the timing of the US Federal Reserve's rate-hiking cycle.

August 21, 2015

This Week in Review: Global Stocks Plunge on China's Growth Setbacks

For the week ending 21 August 2015
  • China's economic slump deepens
  • Japan's GDP contracts in Q2
  • US housing data strengthen
  • US manufacturing weakens
  • Wal-Mart struggles, lowers guidance

Global markets were rattled by more bad news from China. Still reeling from last week's surprise action to let the renminbi exchange rate float more freely, investors sold off stocks and bought “safe-haven” bonds and gold. The bearish mood was exacerbated Friday by the weakest reading from China's factory sector in six years. The VIX volatility index hit 24 intraday, a high not seen in 2015, and the S&P 500 Index fell into negative territory for the year to date. The yield on the 10-year US Treasury note dropped to 2.04%, the lowest rate since April.

August 14, 2015

This Week in Review: China's Currency Depreciation Sparks Selloff

For the week ended 14 August 2015
  • China devalues currency
  • Eurozone growth slows
  • Greece approves bailout deal 
  • US retail sales, industrial output rise
  • Google restructures as Alphabet

Global stocks endured a rocky week, with European stocks faring the worst, rattled by China's surprise currency devaluation and the eurozone's disappointing economic growth. US data were largely positive, however.

August 07, 2015

This Week in Review: Markets Warm to September Rate Hike by Fed

For the week ended 7 August 2015
  • US payrolls add 215,000; full-time jobs grow
  • Oil prices projected to slide further
  • Eurozone manufacturing rises but drops in Greece
  • China's factory sector weakens
  • Media stocks tumble
US stocks slid while European stocks rose this week, and Asian shares were mixed. Global data were mildly disappointing overall, though a solid US monthly employment report was seen as increasing the likelihood that the US Federal Reserve would raise interest rates in September.