The Week In Hindsight, 07 February 2014

The Shanghai Composite index posted a positive performance in New Year trade as sentiment surrounding many Chinese stocks remains broadly positive, despite ongoing concerns over both the wider economy and the financial system.

SSE Index

Growth forecasts for the world’s second largest economy see 2014 GDP coming in at 7.4%, the lowest level since 1990 and a marginal reduction on 2013 figures. The next event of significance for the Chinese economy will be the release of trade balance and inflation data next week. Should these indicate that the economy is slowing at a faster pace than previously expected, emerging markets could once again come under heavy selling pressure.

Elsewhere in the world of the up and coming, prelim estimates for Indian GDP showed the economy expanding at an annualised rate of 4.7% throughout the year finishing on the 31st of March 2014. This is a modest improvement on 2012 -2013 growth and comes as a reminder that although sentiment surrounding the emerging nation remains tender, opportunities may still be there for the taking.