International News (Issue 355) – 12 June 2015

image_pdfimage_print

International Economic Markets

 

I’m going to keep it very succinct this week on international markets given there were predominantly only two major items for report.

 

China

 

In China, the decision NOT to include Chinese mainland shares in the pre-eminent emerging market benchmark index was notable. In reality, the inclusion of China here is only a matter of time, and will more than likely occur 12 months from now.

 

The ongoing maturation of the Chinese stock-market is a theme that will be with us for a decade or more, and will surely be a theme for investors to support and pursue.

 

Europe

 

The second issue to note is the ongoing travails of the Greek debt negotiations. Seriously, I couldn’t think of a worse job in the world than being stuck around that table right now.

 

So this week the Greeks annoyed the IMF so much that the IMF negotiators left the table and flew back to Washington. Greece is rapidly running out of cash (we are talking weeks) and on the cusp of major default, short of a resolution to the current impasse.

 

German political resolve remains committed to a solution, but again, the ongoing frustration with the willingness of the Greeks to enact reforms is rapidly destroying the incumbent goodwill.

 

We are getting down to final days and hours next week, so expect the uncertainty and volatility to ratchet up.

By | 2017-06-16T15:16:34+11:00 June 12th, 2015|International News, Weekly Market Update|0 Comments

About the Author:

Prime is an Integrated Wealth Management Firm for business owners and family groups. Prime’s goal is to become the Premier Partner to Accountants for Growth, Succession and Integrated Wealth Management and to deliver personalised advice to clients for a secure financial future.

Leave A Comment