{"id":3976,"date":"2018-12-17T06:11:57","date_gmt":"2018-12-17T06:11:57","guid":{"rendered":"https:\/\/raizinvest.com.au\/investors\/?p=3976"},"modified":"2018-12-17T06:11:57","modified_gmt":"2018-12-17T06:11:57","slug":"market-and-economic-update-17-12-2018","status":"publish","type":"post","link":"https:\/\/raizinvest.com.au\/investors\/blog\/market-and-economic-update-17-12-2018\/","title":{"rendered":"Market and Economic Update – 17\/12\/2018"},"content":{"rendered":"

\"Market<\/p>\n

Market update from George Lucas, CEO Raiz Invest.<\/em><\/h4>\n

 <\/p>\n

Weak Chinese data for November<\/strong><\/h3>\n

The week began on a positive note. In particular, US\u2013China trade tensions eased with China allowing US Soya Beans in again and reducing the tariff on US cars to 15 percent even though Huawei\u2019s CFO, Meng Wanzhou, was facing extradition to the US.<\/p>\n

But then China reported its activity and spending data, which confirmed a dismal November. Growth in investment, industrial value-added and retail sales all slowed last month, with the latter now at a 15-year low. This adds to the evidence that China\u2019s economy is under significant pressure, not from the trade war, but primarily for domestic reasons.<\/p>\n

On top of that, Chinese lending data showed the People\u2019s Bank of China\u2019s preferred measure of credit growth at its lowest since 2005, indicating that the central bank\u2019s efforts to turnaround the Chinese economy with looser monetary conditions are not working yet.<\/p>\n

 <\/p>\n

Ugly Purchaser Management Index fans euro-zone growth fears <\/strong><\/h3>\n

In Europe, there was also the release of weaker-than-expected data. The closely-watched flash Purchaser Management Index (PMI) slumped to 51.3, its weakest since November 2014 (but still signalling growth), and the market began to concern itself that global growth is now slowing.<\/p>\n

The gloomy PMI was largely driven by a sharp drop in France\u2019s data, perhaps suggesting that the yellow vests protests had a serious economic effect. However, even if France\u2019s index rebounds with the protests now over, the euro-zone economy has clearly shifted down a gear and looks set for more moderate growth next year.<\/p>\n

\"Yellow
Gloomy PMI suggests yellow vest protest had a serious economic impact.<\/figcaption><\/figure>\n

 <\/p>\n

Blowout month for US retail sales<\/strong><\/h3>\n

Across in the US, where all the uncertainty began, the news was more upbeat on the economy. The highlight was a 0.9 per cent surge in underlying retail sales for November, suggesting that real consumption growth has remained strong in Q4.<\/p>\n

There was also a solid gain in monthly industrial production, which rose 0.6 per cent due to better utilities and mining output. However, manufacturing output was flat in November.<\/p>\n

Meanwhile, Johnson and Johnson shares plunged more than 10 per cent after reports the company knew for years<\/a><\/span> that its baby powder contained asbestos, including in Australia. The US pharmaceutical and\u00a0cosmetics giant\u00a0strenuously rejected the claims.<\/p>\n

 <\/p>\n

Read our previous blog, 6 Ways to Save More For Christmas<\/span>\u00a0<\/a><\/p>\n

 <\/p>\n

Don\u2019t have the Raiz App?<\/strong><\/h3>\n

Download it for free in the App store or the Webapp below:<\/p>\n

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\"download-raiz-app\"<\/a>
Click to download the Raiz app<\/figcaption><\/figure><\/figure>\n

 <\/p>\n

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Market update from George Lucas, CEO Raiz Invest.   Weak Chinese data for November The week began on a positive note. In particular, US\u2013China trade tensions eased with China allowing US Soya Beans in again and reducing the tariff on US cars to 15 percent even though Huawei\u2019s CFO, Meng Wanzhou, was facing extradition to […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[1],"tags":[],"yst_prominent_words":[953,548,1030,299,332,386,947,1040,1028,151,940,1038,289,1029,1036,1037,117,166,1027,1041]}