Yesterday’s selloff in the Chinese stock market sent ripples around the market, so Marc Ostwald – Market strategist at ADM Investor Services – joins Nick Batsford and Zak Mir in the Tip TV studio to discuss what this means for the US, and where the Federal Reserve now stands on an interest rate hike.
Is the asset price bubble bursting?
The Chinese economy, which has been viewed (alongside the US) as the motor for global growth, has seen things go from bad to worse over the weekend as the stock market tumbled. Marc Ostwald believes this is due to bad habits in investing and regulation in the country, and is the primary cause for concern for the rest of the world looking to raise interest rates and continue on course to strong economic growth.
The markets have become disorderly and exceptionally volatile over the last week, and Ostwald believes this could be the new norm for the time being, suggesting traders become comfortable with faster paced markets.