Capital Markets: Winter 2019
China Is Stimulating
• Chinese growth has been a key driver in volatility of global equities
• A trade deal would go a long way to help the decelerating Chinese economy but monetary policy may pick up some of the burden until then
Will easing work 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. China interest rate is SHIBOR one year rate.
Made with FlippingBook - Online Brochure Maker