Capital Markets: Observations & Insights
China Is Stimulating
• Chinese growth has been a key driver in the volatility of global equities
• Through various means, China is working to stimulate its economy
• A trade deal would go a long way to help the decelerating Chinese economy but stimulus may pick up some of the burden
Is easing working again?
Lower rates helped equities bottom
S&P 500 YoY
China Interest Rate
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19
Source: FactSet as of March 2019. China interest rate is SHIBOR one year rate.
Made with FlippingBook - Online catalogs