Invest
Market reacts to China’s slouch, commodities take a hit
Concerns that China’s economy may have peaked, potentially sparking a global knock-on effect, is premature at this stage, says an investment director, despite commodities taking a hit.
Market reacts to China’s slouch, commodities take a hit
Concerns that China’s economy may have peaked, potentially sparking a global knock-on effect, is premature at this stage, says an investment director, despite commodities taking a hit.
Investors have been concerned that Beijing’s efforts to rein in a credit bubble will start to wear away at growth, precipitating corporate defaults and squeezing investment demand.
However, Acorns Grow Australia chief executive George Lucas believes otherwise, saying 2017 will be a politically important year for China, with President Xi Jinping set to preside over a change to the Communist Party’s key personnel at the five-year National People’s Congress.
“Investors need to remember that there is a lot of incorrect reporting of China’s peak and that it may continue to reach new heights, just at a lower rate of growth,” Mr Lucas said.
“If there are signs of fragility in the economy after June, we would expect the government to relax credit policies to kickstart the economy.”
Concerns about China have also seen oil prices face a recent decline, with the key commodity falling by 7 per cent last week, as China has been a key source of demand.
Oil is being hit further by a lack of market confidence in OPEC’s ability to overpower the resurgent US shale industry.
Oil had its biggest weekly drop in a month, while WTI and Brent benchmarks fell by more than 7 per cent, their biggest falls since early March.
Stock market
Where to find dividends in a low-rate environment
Australian investors who are income-focused are still able to find strong dividend-paying stocks, but the market is changing, an expert has said. ...Read more
Stock market
Did investors overreact to the COVID-19 pandemic?
The economic downturn has not hit many sectors of the economy as hard as first predicted, with the reporting season revealing that many sectors will recover quickly, an investment fund has revealed. ...Read more
Stock market
Market volatility not a worry for Millennial investors
In spite of COVID-19-related volatility, Australian investors aged between 24 and 39 remain bullish about the current sharemarket. ...Read more
Stock market
Why investors will miss their mark for the next 5 years
Australian investors are urged to rethink their investment targets, with the COVID-19 recovery likely to have an impact on returns, new research has found. ...Read more
Stock market
Standing strong in a crisis, ethical investments are here to stay
Ethical investments are more than just a short-term fad, an investment manager has advised. ...Read more
Stock market
Sovereign wealth fund goes negative for the first time since the GFC
The Future Fund has posted a rare negative return for 2020 and warned that a “challenging and volatile” economic climate could hurt previously strong gains moving forward. ...Read more
Stock market
Don’t worry about dividends: Stocks still going strong
Dividends are still up for grabs for active investors willing to wade through the major headlines and an abundance of market negativity, an investment expert has flagged. ...Read more
Stock market
Why Afterpay and Zip investors should buy Tuesday and sell Friday
Investors in speculative stocks, including Afterpay and Zip, can theoretically purchase more shares at a reduced price on a Tuesday, before seeing the value increase on a Friday, new research has reve...Read more
Stock market
Where to find dividends in a low-rate environment
Australian investors who are income-focused are still able to find strong dividend-paying stocks, but the market is changing, an expert has said. ...Read more
Stock market
Did investors overreact to the COVID-19 pandemic?
The economic downturn has not hit many sectors of the economy as hard as first predicted, with the reporting season revealing that many sectors will recover quickly, an investment fund has revealed. ...Read more
Stock market
Market volatility not a worry for Millennial investors
In spite of COVID-19-related volatility, Australian investors aged between 24 and 39 remain bullish about the current sharemarket. ...Read more
Stock market
Why investors will miss their mark for the next 5 years
Australian investors are urged to rethink their investment targets, with the COVID-19 recovery likely to have an impact on returns, new research has found. ...Read more
Stock market
Standing strong in a crisis, ethical investments are here to stay
Ethical investments are more than just a short-term fad, an investment manager has advised. ...Read more
Stock market
Sovereign wealth fund goes negative for the first time since the GFC
The Future Fund has posted a rare negative return for 2020 and warned that a “challenging and volatile” economic climate could hurt previously strong gains moving forward. ...Read more
Stock market
Don’t worry about dividends: Stocks still going strong
Dividends are still up for grabs for active investors willing to wade through the major headlines and an abundance of market negativity, an investment expert has flagged. ...Read more
Stock market
Why Afterpay and Zip investors should buy Tuesday and sell Friday
Investors in speculative stocks, including Afterpay and Zip, can theoretically purchase more shares at a reduced price on a Tuesday, before seeing the value increase on a Friday, new research has reve...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
