Tag Archives: People’s Bank of China

Interest rates: what do central bankers know that we don’t?

It is striking to see that even before two major central banks acted to ease monetary policy further, capital kept flowing back into risky assets. It makes you wonder why these central banks are acting — since there is no fear in the market and everything seems fine — and whether they are leading or actually following what’s really going on in the markets.

Despite evidence of further flows of funds into risky assets, there are signs that market interest rates are beginning to rise independently of central banks’ intentions, and this is troubling.

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China cuts growth estimate, but stock market selloff is overdone

China cut its economic growth estimate for last year, and although the revision was minuscule, it was enough to send jitters through markets again.

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Extreme fear leads to record outflows from equities

An indicator of investor sentiment has fallen to extreme fear levels, after sinking deeper into bearish territory in previous weeks.

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Four scary things about the stock market crash

For years, investors haven’t seen such a crash in the stock markets. In what was supposed to be a sleepy holiday month, some traders had to cancel their holidays because of the market turmoil.

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Sentiment turns extremely bearish as investors flee emerging markets

Fear deepened and sentiment is now extremely bearish, while outflows from risky assets intensified last week, data from Bank of America Merrill Lynch showed.

The bank’s proprietary bull/bear index became even more bearish than last week, falling to 1.4 – a very strong contrarian “buy” signal if you’re brave.

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Extreme bearishness triggers contrarian ‘buy’ signal

Extreme bearishness dominated the markets last week, when investors rotated out of high-beta assets like high-yield debt and emerging markets bonds and equities to high quality government bonds, money markets and utilities funds.

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Investors not worried about Chinese currency devaluation

The People’s Bank of China (PBOC) is likely to pursue a stable-to-weaker renminbi this year, a survey of investors showed recently.

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