Tim Bond, head of asset allocation at Barclays Capital, discusses the outlook for Chinese growth, as well as government bond yields and when the Fed will start raising rates.
We believe that one should closely watch the behavior of the Chinese stock market. It led world financial markets out of the crash in January this year and remains strong. Also note how the Chinese stock market was falling well before the “crash” that occurred in Sept/October last year. Is the Chinese stock market becoming a leading indicator for the US stock market? Of course time will tell. For whatever it is worth the Chinese stock market is suggesting that there is no problems on the horizon which should be good for equities and especially commodities.
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