Markets volatile on the back of eurozone and Chinese growth worries.
In a week of déjà vu, eurozone debt and Chinese growth worries dominated markets. In Europe, attention turned to Spain and Italy and doubts over their resolve to take the steps needed to get their houses in order. Consequently, investors switched back to ‘risk off’ mode.
News that first quarter growth in China was below most forecasts fuelled concerns about weakening demand in the world’s largest economy. In contrast to most developed world economies, China’s challenge is to manage a measured slowdown of its giant economy to bring inflation back under control whilst maintaining its social and economic reform programme.
Also in this week's bulletin...
- As the Organisation for Economic Development states its belief that the UK is on the brink of a lasting recovery, caution is reflected in the record £754 billion held in cash by corporations. One positive for shareholders is the prospect of another strong year of dividend growth.
- Recovery hopes for the US received a boost with strong first quarter results from some of the country’s largest businesses and suggestions that the housing market was nearing the bottom.
View this week's Market Bulletin, which contains thoughts and opinions of St. James’s Place and our range of investment managers on the key issues affecting investors.
Most computers will open PDF documents automatically, but you may need to download Adobe Reader.