China and Emerging Markets

The Dow closed up 176 points on some weak housing data, and hence growing expectation of a 50 point rate cut.

China’s growth is tipped to slow this year but according to DBS Group this will make for more sustainable growth longer-term, making it a relatively safe haven in the current uncertainty.

Stocks in Asia, Europe and elsewhere suffered huge falls yesterday and overnight as all confidence is lost in the financial sector and the Bush rescue package is seen as inadequate.

As the Chinese government continues its fight against inflation its policy measures are becoming more restrictive and this has GaveKal cautious on the outlook for Chinese equities.

While GaveKal reiterates its lack of concern over a Chinese slowdown, Dennis Gartman has received some disturbing anecdotal news.

The Dow lost 25 points in a volatile but thin session last night, following news the Chinese government had bought into Morgan Stanley.

CommSec gives its view on a wide range of issues that will dominate the Australian landscape in 2008.

GaveKal fears the days of China’s deflationary impact may be over.

FNArena presents a correlation of a wide range of analyst views as to what 2008 will bring for the global economy and financial markets.

The Dow rallied 100 points last night despite another big subprime write-down – this time from UBS.