As TrendCalls Team had stated in our previous International issues about PIIGS & Yuan appreciation both the points were highlighted by the markets. China stocks indices retreated sharply on fear of Government would take aggressive stance & Yuan appreciation would hit exporters. In our view China would have to exit its loose monetary policy & moderate its growth.The sooner it is done would be good for China & the realignment of World growth too. Otherwise it would create a bubble bigger than SUB Prime which would eventually cause depression world over. The speed of monetization of assets in China & the role played by the Government to make the local bodies or regional Governments afloat will cause lots of pain financially & socially.
The Clash of Titans (USA v/s China) is creating multiple & confusing dynamics in the markets. Both countries Governments are reacting heavily in the natural functioning of the markets which is creating distortions. The question is who will budge first so that other may have its way.
Views Given By TrendCalls Team
No comments:
Post a Comment