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China Shares Fall To 15-Month Low On Slowdown Fears

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http://news.bbc.co.uk/1/hi/business/10506693.stm

The Shanghai composite index has closed at a 15-month low after data pointed to slowing growth and rising inflation.

The index dropped 19 points or 0.8% to 2,364 at the end of trading, its lowest close since April last year.

Shanghai was one of the first markets to recover after the global financial crisis, but peaked in August last year. It has since fallen 32%.

Growth in passenger car sales slowed in June, the latest sign that China's high speed economy may be cooling down.

'Sharp' slowdown

Car sales rose 10.9% in June compared with a year earlier, down from a growth rate of 25% in May.

On Thursday it was reported that the Purchasing Managers' Index (PMI), which gives an indication of the health of the manufacturing sector, fell to 52.1 in June from 53.9 in May. Anything above 50 shows expansion in manufacturing output.

Then on Monday, HSBC announced that a similar index that it produces for the Chinese service sector fell to a 15-month low of 55.6 in June from 56.4 in May.

"The Chinese stock exchange has had a pretty horrific year so far," said Dariusz Kowalczyk, China economist at Credit Agricole in Hong Kong.

"The economy is still growing, but it is slowing very sharply," he explained to the BBC.

Down 32% since August, because people are investing property. You can't really go wrong in property and the returns have out performed the stock market. It's really a no brainer where to put your cash to make quick easy money. This is an excellent get rich quick scheme, seems fool proof to me.

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Look how the red and yellow moving averages cross, providing accurate, and reliable buy and sell signals. A sell signal has recently ocurred.

Some might say the hot money is in China and Brazil, and their stock indices lead the Western ones.

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The media are useless are predicting the future.

So the ACME stock index is up 1.5%, so they go to the "good news" cabinet, and pull anything out at random e.g. increased consumer confidence from GDP figures, to try to explain the rise. Really it's that easy? So the next day ACME stock index is down 1.5%, so the reporters go to "bad news" cabinet and pull out a reason at random e.g. fears grow over smoking volcano.

Fundamentals make bad investing companions, in the short term.

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  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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