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World Stock Markets Trading Discussion - Edgy embrace


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w?s=%5EAORD

 

Gloom turned to doom with All Ords closing -1.9% but now we're back in the support area so possibly a bounce tomorrow.  All sectors were down led by Miners -3.4%, Materials -3.1% and Gold -3%.

Major losses in Asia: China -5.9%, Hong Kong -5.8%, India -1.5% and Nikkei -3.1%.

 

 

On to UK/Europe:

 

 

t?s=%5EFTSE&lang=en-AU&region=AU&width=3

 

t?s=%5EGDAXI&lang=en-AU&region=AU&width=

 

t?s=%5EFCHI&lang=en-AU&region=AU&width=3

 

https://au.finance.yahoo.com/

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Chinese crash just got extended for another 6 months.

China’s securities regulator banned major shareholders, corporate executives and directors from selling stakes in listed companies for six months
Investors with stakes exceeding 5 percent must maintain their positions, the China Securities Regulatory Commission said in a statement. The rule is intended to guard capital-market stability amid an “unreasonable plunge” in share prices, the CSRC said.

 

 

"unreasonable plunge" they say, solid companies plunging to single digit P/E you would think.

While the median price-to-earnings ratio in China has dropped to 53 from 108 at the height of the rally, valuations are more than twice as high as those on the Standard & Poor’s 500 Index.

 

 

http://www.bloomberg.com/news/articles/2015-07-08/china-bans-stock-sales-by-major-shareholders-for-six-months

 

So who could be bullish on a crashing, but still grossly overvalued and overleveraged market? Goldman sacks of course!

 

The rout has done nothing to erode the bullish outlook of Goldman Sachs Group Inc. Kinger Lau, the bank’s China strategist in Hong Kong, predicts the CSI 300 will rally 27 percent from Tuesday’s close over the next 12 months as government measures boost investor confidence and monetary easing spurs economic growth. Leveraged positions aren’t big enough to trigger a market collapse, Lau said.

It’s not in a bubble yet,” Lau said in an interview. “China’s government has a lot of tools to support the market.”

 

 

http://www.bloomberg.com/news/articles/2015-07-08/china-stock-futures-plunge-amid-trading-halts-margin-debt-drop

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