Saturday Night Quarterback says, For the week ahead expect…
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...Trust and local government debt-default fears recede (a bit) in China, boosting global markets
For the moment relief from China is trumping negative news on durables orders from the United States. Relief from China stems from a decision by the Industrial & Commercial Bank of China, China’s biggest lender, to stand behind a trust product issued by China Credit Trust, that was facing default on January 31.
Drop in China manufacturing index roils global markets–again
Stocks in Shanghai and Hong Kong took a beating over night—and that has turned into a down day for emerging markets in general and slightly smaller retreats for developed market. The impetus for the downward move was the release of a preliminary version of a Purchasing Managers Index showing a contraction in China’s manufacturing sector for January
Expect more market-moving credit crunches as China approaches Lunar New Year on January 31
Not only is China’s central bank fighting what is so far a losing battle against loose lending but it also has to keep that battle from turning into a full-scale liquidity rout as every business and household in China hoards cash on the run up to the January 31 Lunar New Year.
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