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13 Apr 2015
A Chinese correction coming up - BBH
FXStreet (Guatemala) - Analysts at Brown Brothers Harriman explained that in China, a sizable correction is bound to happen sooner or later after the parabolic rise in stocks in recent months.
Key Quotes:
"Although we still see the drivers for the rally remaining in place, the risk-reward doesn’t look so favorable in the short term."
"China reports March retail sales and IP as well as Q1 GDP Wednesday. Consensus for retail sales is at 10.9% y/y, for IP at 7.0% y/y, and for GDP at 7.0% y/y. March trade data was much weaker than expected, highlighting downside risks for this week’s data."
"Money and new loan data will come out sometime this week, but no date has been set. Soft China data will cement market expectations for more stimulus measures this year."
Key Quotes:
"Although we still see the drivers for the rally remaining in place, the risk-reward doesn’t look so favorable in the short term."
"China reports March retail sales and IP as well as Q1 GDP Wednesday. Consensus for retail sales is at 10.9% y/y, for IP at 7.0% y/y, and for GDP at 7.0% y/y. March trade data was much weaker than expected, highlighting downside risks for this week’s data."
"Money and new loan data will come out sometime this week, but no date has been set. Soft China data will cement market expectations for more stimulus measures this year."