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Should investors in the Chinese stock market be concerned by the regulatory crackdown?
Global equities continued their recovery last week, ending up 2.1% in local currency terms. Markets are now down only 1.2% from their early September high.
Global equities ended last week unchanged despite a further surge in gas prices and a step-up in bond yields. At their low point a week ago, markets were in spitting distance of recording a 5% decline from their early September high but are now down a more modest 3% or so.
Last week’s commentary started with the words ‘Global equities seem to have regained their poise’. Well, we spoke too soon as markets shortly resumed their decline, ending last week down 2.2% in local currency terms.
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