Under the radar
Chinese equities are a case in point. Their recent outperformance has been more abrupt than most think. As
put by RBC Global Asset Management Inc. Chief Economist Eric Lascelles, early in 2020 “recriminations were flying against China given its status as the point of origin for the disease” and its heavy-handed approach to confinement measures.
The renminbi floundered in response to the weaker growth outlook and as the epidemic was at that time considered purely a Chinese event.
Fast forward a few months, and we’re seeing a reversal of China’s misfortunes, and prior criticism of a draconian lockdown has flipped to praise. It helps that COVID-19 is no longer seen as a Chinese-centric issue. Moreover, as Lascelles notes, the original epicenter in China “remains nicely under control” and the country’s “economic rebound appears to be vigorous” as China slowly reactivates its economy.
3 Another week, another massive Fed development
3 Canadian Energy companies have tough decisions to make
4 UK dividends are under unprecedented pressure
4 Fiscal support continues to roll out across Asia-Pacific