China debt fueled growth numbers look unsustainable, says Craig Erlam, Senior Market Analyst at Oanda while discussing state of the world’s second largest economy with Tip TV’s Zak Mir.
Key points:
China – Numbers look unsustainable given the rising debt
US elections – Paddy Power paying out Clinton bets looks more of a publicity effort. There is still lot of anti establishment vote/sentiment in US that could come out in favour Trump on the Election Day
Japan – International investors are fleeing the Japanese stock markets at fastest pace since 1997. This is slightly confusing given the Bank of Japan is an active buyer in stock markets. It will be interesting to see what BOJ does next
EUR/GBP – last high was built on weak momentum. 0.88 levels is a strong support
EUR/JPY – failed to hold above Ichimoku cloud. Overall trend remains bearish
Footsie – Could see a move towards 6875, which is double top breakdown target, other major indices – S&P, Dow are looking toppy