Joshua Mahony – Market analyst for IG – Joins Zak Mir and Bill Hubard in the Tip TV studio to discuss China’s latest efforts in curbing stock market decline, and where the US stands on effecting interest rates.
Yuan liberalisation necessary for stability
Despite a lack of actionable moves for the People’s bank of China, they’re still sitting on reserves of $3.5trillion which offers some sentiment of comfort to the markets, however Zak Mir believes that there’s still a risk of fuelling another bursting bubble as the Chinese stock market has seemingly spiralled out of control this week. Speculation over what will happen next from the Yuan is annexing the problem from the US and European markets, which are moving investments elsewhere to combat losses in FX value.
September Federal Reserve rate hike written off?
With the stock market instability being highlighted by Monday’s rout, many are calling the September rate hike to face a setback. Bill Hubard believes that, should there be inflationary pressure on wages coupled with strong NFP figures, then it still remains on the cards.