Stock prices have swooned around the world, as alarm grows over China’s economy. We’ll look at why and the path ahead.
The report Friday as Wall Street closed for a long weekend: US markets have never had a worse start to a new year than this one, 2016. From Shanghai to New York and way beyond, the opening weeks of the year were down, down, down. There’s room to bounce. Asian markets did at the opening bell today. But big fears still, too. On China. On oil On troubles all over, and what’s being called the “crisis economy.” This hour On Point, 2016’s rough start in the markets and what it means.
-- Tom Ashbrook
Rebecca Patterson, managing director and chief investment officer at Beessemer Trust, a wealth and investment firm.
William Overholt, Asia Center Fellow at Harvard University. President of the Fung Global Institute. Author of "Renminbi Rising" and "Asia, America and the Transformation of Geopolitics." (@WilliamHOverhol)
From Tom’s Reading List
The Wall Street Journal: Global Stocks Rally Despite Weak Chinese GDP Data — "Global stocks rallied Tuesday despite a steeper-than-expected slowdown in Chinese growth, as sharp gains in oil prices lifted energy and mining shares. Futures pointed to a 1.4% opening gain for the S&P 500. Changes in futures don’t necessarily reflect market moves after the opening bell."
CNN Money: China and oil will drag down global growth -- "The IMF has downgraded its global growth projections for this year and the next. The world economy will continue to grow, the group predicted, but not by as much as it estimated back in October."
New York Times: Slump in China’s Industrial Sector Weighs on an Already Slowing Economy — "While China has been moving away from the type of low-end manufacturing that has been Dongguan’s specialty, the protracted slump in the country’s vast industrial sector is a major threat to the nation’s already slowing economy. As the government tries to manage the situation, the risk is that the Chinese economy is worse off than expected — a concern that has put markets around the world on edge."
This program aired on January 19, 2016.