China and Emerging Markets

Some positive hints from China provided Wall Street with a long-awaited bounce as commodities soared. Dow up 150.

Westpac economist Bill Evans has been talking to Americans about both our markets.

Wall Street fought back from new lows last night as presidents, treasury secretaries and Fed chairman all had something to say. The Dow closed down 37 as analysts contemplated the significance of a twelve-year low.

Confirmation of a record loss from AIG and a huge rights issue from HSBC sent global markets tumbling overnight. Dow down 300. (Locked for subscribers until 10:00 AEDT)

The Chinese economy should recover later this year as the government’s stimulus package impacts and as G3 economies also improve.

While awaiting news on Australian iron ore, China has secured oil deals with Brazil and Russia.

Shareholders are already revolting but analysts see merit in Rio’s Chinalco deal.

Weekly musings from your editor. What price should BHP shares trade at and is current investor optimism justified?

China’s exports continue to fall much harder than expected, but is there a ray of hope in the underlying trends?

As the latest US stimulus package is passed in the Senate, hyperinflation lurks as a catastrophic consequence.