Weaker Chinese economy will impact the global economy and markets

Weaker Chinese economy will impact the global economy and markets

Financial experts at Danske Bank suggest that there’s an ascending risk for global markets because a dipping Chinese economy will have a devastating impact on the global economy as well as markets.

No one denies that China happens to be the primary contributor to the world economy, generating one-third of global surge. The Asian country acted as a main driver behind the global revival in 2016. Commodity exporting emerging markets derived benefits from both higher volumes as well as prices, while developed markets witnessed a surge in exports to China and also other emerging markets. With the Chinese economy decreasing this year, the lift to the world economy rebounds and it’s a huge reason why financial analysts look for a high in the PMI cycle in H1.

The steep ascend in commodity prices observed in 2016 was pulled mostly by higher Chinese activity. Well, with Chinese companies consuming approximately 50% of global metals, this Asian country appears to be a number one driver of commodity prices. Moreover, for the last few months, both metal and crude prices have gone down, which could be explained by the softer Chinese economy.

 

 

 

Similar

Latest news

Greenback edges down

On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera