Reuters Insider - Markets calmer but China still a worry

Baader Bank AG

08/09/2015 13:35

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 https://insider.thomsonreuters.com/link.html?cn=share&cid=1478358&shareToken=MzpkODIxMTdhNS1kYTljLTQ4NjYtOTc5MS1iYjQ5NmVkODEzNzg%3D&playerName=ReutersNews 
                                                                       
 Source:             Thomson Reuters                                   
                                                                       
 Description:        Attempts by Chinese policymakers and regulators to 
                     soothe the country's jittery markets had limited  
                     impact in Asia with stocks tumbling but Europe    
                     remained calmer.                                  
 
 
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 Short Link:  http://reut.rs/1EKuspJ  
 
 
Transcript (May be auto-generated)

                 For once, European markets didn't take their cue from China – top European 
shares rose around 0.5% after China's Shanghai Composite fell 2.5%. Baader 
Bank's Robert Halver thinks the worst may be over. It seems there is no further 
bad news coming from China and the Chinese currency has appreciated again. I 
don't think anyone still fears a ruinous depreciation. But there was some bad 
news for China – it revised its growth forecast down slightly and its foreign 
exchange reserves posted their biggest monthly fall on record in August. It was 
hardly surprising after Beijing scrambled to hold the slide in the Yuan and 
stabilize markets following last month's surprise devaluation. G20 leaders 
tackled that issue at the weekend, agreeing not to ease currencies just to 
create an advantage. But that didn't rule out doing so to stimulate economies or
stay competitive. 

Darren Sinden is from Admiral Markets: A talk is a good game, it will be nice to
think that they will have worked together to try and smooth the bumps out in the
global economy, but I suspect the reality is that they would revert overtime and
everyone would do their own thing. The US interest rate decision – now, just 
nine days away - remains the main focus for investors. Sinden predicts a 'hold' 
for now. They haven't raised for nine years; another month or two will not make 
too much difference and there aren't signs particularly that an inflation is an 
issue in the US economy, so they can still defer and err on the side of caution 
should they wish to. US investors were keeping quiet with markets closed for 
Labor Day