Webinar Special: What happened to China?
The dramatic plunge of Chinese stocks came as a shock to many who had borrowed money to invest and get their piece of the Chinese Dream. The government jumped in to bolster the market, but will it work?
Join Paul Wallace as he dissects China’s current market situation and sheds light on what’s happening.
Don’t miss this free webinar from ActivTrades | 15 of September 2015
Time:19:00 – 20:00 (UK Time)
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When day trading or long-term trading, fundamental and technical forms of analysis are two of the most common methods that may be employed. These forms work from the same data, but the way they use the information is completely different. It is possible to use both fundamental and technical analysis together, but it is more common for a trader to choose one or the other. However, none of those changes in price could occur without investors using fundamentals to make decisions in the first place. That takes into account all the numbers and comparisons to previous statistics and expectations. This would support the argument that fundamental-based investing provides the foundation for technical trading.
Take a more informed approach to increase your chances of success in trading watching to ActivTrades News. Be aware about economic events and how they will affect the Financial Markets
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With the aim of boosting the demand for credit and economic growth, the People’s Bank of China will inject liquidity into the financial system. The latest economic data have raised concerns about the growth of the world’s second largest economy.
The central bank of China joined the European counterpart in the decision to inject liquidity to combat weak economic growth, which highlights the divergence of policies among the largest economies in the world, to the extent that the United States is, on the contrary, reducing stimulus.
Chinese government has mentioned an injection of 500 billion yuan (about € 62.7 billion) in the five largest banks in the country. This liquidity will be equally shared among these banks, namely, Industrial & Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Bank of China and Bank of Communications.
Credit expansion in China is based on specific measures to boost growth, different from that are still being carried out in Europe and Japan. Attaching a period of three months to its injection, China takes another step by this way, while maintaining control of a process designed to boost demand for credit in an economy already in debt.
Earlier this month, the European Central Bank announced new stimulus to the economy, and the reduction of reference interest rate to a new record low. Across the Atlantic, however, may begin to anticipate when the American Federal Reserve announce the rising price of money. The decision of the Chinese central bank is known precisely on the day that ends the monetary policy meeting the Fed, in which those responsible should reduce by 10 billion its program of asset purchase and maintain, for now, the policy rate between 0% and 0.25%.
China’s industrial output and retail sales increased at a faster pace in May, adding to evidence that Premier Li Keqiang’s support measures are stabilizing the world’s second-biggest economy.
Factory production rose 8.8 percent in May from a year earlier, the National Bureau of Statistics said in Beijing today, up from 8.7 percent in April. Retail sales increased 12.5 percent and January-May fixed-asset investment growth was little changed at 17.2 percent.
Today’s reports may bolster Chinese leaders’ confidence that so-called mini-stimulus measures will prevent a deeper economic slowdown. Even so, policy makers are contending with a property market slump, along with risks from shadow banking and rising bad loans that threaten to limit the scale of a recovery.
Read more at: bloomberg.com
China’s so-called mini-stimulus is beginning to morph into something larger.
Nomura Holdings Inc. economists said measures including central bank loans for low-income housing are “starting to amount to something quite significant” as they scrapped their forecast for a second-quarter cut in banks’ reserve requirements. UBS AG said the government has gradually strengthened its mini-stimulus over the past couple of months and the central bank “has quietly eased liquidity conditions.”
Read more at: bloomberg.com