Wednesday 27 April 2016

Do global economic risks ease?

The Fed today announces today that it will maintain its rate, but it sees a sign of global economic risks easing. So do global economic risks really ease? Many problems remain unsolved ahead of us. Not until this June, the question of Brexit remains. The OPEC meeting did not deliver an agreement on the production freezing. Maybe the Chinese export data are very inspiring, but the structural reforms of the Chinese economy have many uncertainties, given the current debt level is sky high. The slowdown of the emerging markets is still a systemic risk for us to face, as some emerging economies are not even performing as well as the Chinese economy is. Therefore, I do not think global economic risks ease, I think that the market was panic when all negative information suddenly came at the same time, now the panic eases but the risks remain.

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