July brought increases in all markets in the Asian and Pacific region, which offset part of their losses incurred during the previous two months. But stock markets were volatile in anticipation of clearer signs for the development of world economy in the second half of the year, after economic data deteriorated in recent weeks, most of these United States. With the strong growth to identify the stock exchange in Shanghai, where the main Shanghai Composite Index jumped nearly 10 percent in July, while the index of the largest and most frequently traded companies CSI 300 rose by 12%. The reason for this has hopes that the Chinese government will postpone or delay the measures to limit bank lending and speculation of the real estate market in the country. Most of last month have increased notably shares of Chinese companies in the sector of real estate. Their lead from the beginning of this month amounted to 16 percent, which ranks them first among the five industry groups represented in the Shanghai Composite. Shanghai Composite jump of 10% in July by the largest since July last year. During the previous three months, it decreased by between 8% and 10% and became the most loser stock measure in the world this year with a loss of 20%. In the middle of the month it became clear that the Chinese economy has slowed its pace of growth to 10.3 percent in the second quarter from 11.9 percent in the first.
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On Thursday, the U.S. indexes are traded with almost all fall session, ultimately S & P 500 recorded its third straight decline. Trading began with the rise of the main indicators for the euro after a moment passed over the 1.3100 against the dollar. Negative mood came from weak corporate accounts of some major technology companies. Nvidia fell 9.9 percent to 9.13 dollars. Manufacturer of computer graphics lowered its forecast for sales in the second quarter, taking a drop in demand in Europe and China. For the second quarter Symantec, in addition to weaker sales and earnings forecast below analysts’ expectations. The biggest maker of antivirus software session ended with a decline of 11.18 percent to 13.03 dollars for security. Colgate-Palmolive also failed to meet sales expectations, leading to a decrease in the Company’s shares by 6.84 percent to 78.12 dollars. Intel and Hewlett-Packard were among the most unprofitable companies in Dow Jones Industrial Average, cheaper respectively 1.41% and 1.53% respectively to 21.03 and 46.41 dollars per share. From Goldman Sachs financial sector is marked by a growth of 3.65 percent to 152.58 dollars per share. Citigroup ended the session with a growth of 3 cents to 4.12 dollars level.
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Most stock indexes in Asia and Pacific region increased its value today after losing three consecutive sessions before, after being revived hopes that the Chinese government will slow the rate at which restricts investment in real estate in the country. By the investment company International Strategy & Investment Group expressed confidence today that three months China will soften its policy of limiting growth in the real estate sector because of rising risks to global economic slowdown and inflation. Meanwhile, speaking to government officials in Beijing showed that domestic demand in China will probably grow at a rapid pace in the second half of the year. They expect China’s economy to withstand the risks arising from debt crisis in Europe and a possible slowing U.S. economy. These statements strongly increased by 2.2% to 2 528.73 points wider Chinese index Shanghai Composite. He became the most profitable in the region today, followed by the Australian S & P / ASX 200 with a growth of 1 percent to 4 403.60 points and the Hang Seng, which rose 0.9 percent to 20 264.59 points.
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Chinese economy slowed its pace of dynamic growth in the second quarter, rising by 10.3 percent compared with same period of 2009. During the first three months of this year gross domestic product (GDP) of the country increased by 11.9 per cent yoy. The government in Beijing, however, taken several steps to cool bank lending and slow the pace of growth in the real estate sector over the past few months. This, together with the effects of fiscal crisis in Europe may have contributed to slower GDP growth in the second quarter. He was less than expected and analysts of growth of 10.5 percent. China’s economy should grow at least 8% a year, so that employs numerous workers in the country. Series data for China today also showed that annual inflation slowed to 2.9 percent in June compared with 3.1 percent in May. Producer price level in turn increased by 6.4 percent over the past 12 months to June, which is less than the production of the 7.1 percent inflation in May. This will reduce pressure on the Chinese central bank to tighten monetary policy. Industrial production in China on the other hand has grown by 13.7% yoy, which was its weakest growth rate in the last nine months. For comparison, it surged by 16.5 percent in May and 17.8 percent in April compared with the corresponding months of 2009, market analysts expect it to grow more with 15.2 percent on an annual basis. These data highlight the risk of overheating Chinese economy is diminishing and this is likely to weaken the pressure on the government of Prime Minister Wen Jiabao to impose restrictions on bank lending and investment properties. In 2009 China’s banks granted record amount in home loan comparison and businesses, and housing price inflation in the 70 largest cities in the country at record pace this year. Worries about excessive appreciation of the shares of stock companies in China, in turn, decreased by 25% the main stock measure in the country Shanghai Composite.
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The national stock indexes in Asia and Pacific region rose strongly today, bringing the regional stock measure MSCI Asia Pacific the largest of its increase for the past two weeks. MSCI Asia Pacific, which covers the stock markets in ten Asian countries, Australia and New Zealand increased by 1.1 percent to 113.07 points and is on track to record its highest session from June 21 onwards. Earlier today, it decreased by 0.9% due to the volatility of financial markets in recent weeks caused by concerns about Debt Crisis in Europe. Low ratios of price and expected profit (P / E) of shares in its composition, however, gave a signal to investors purchasing. Increases in mining companies in the region continued for a second day after news of major acquisitions in the sector on Monday. Well presented yet producers of copper and aluminum after losing their series, which lasted nine sessions. Among national indexes most today is the main Chinese stock increase meter Shanghai Composite, which added 1.9 percent to 2 409.42 points. He drive him from their lowest level in 15 months, which reached yesterday. In Hong Kong’s Hang Seng rose 1.2% to 20 084.12 points. In Japan the Nikkei 225 rose 0.8 percent to 9338 points, stock optimism was supported by a rally in China. In Taiwan Taiex added 1.5 percent to 7 548.48 points for second straight day, a South Korean Kospi index rose 0.6 percent to 1 684.94 points.
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The Prime Minister of China Wen Jiabao warned that the global economy remains unstable and at risk because of the indebtedness of the countries which increases the possibility for a second economic downturn. With regard to the risk of second cycle downturn of the global economy Jiabao states that must be carefully and act decisively to prevent a risk of such. Therefore, as it is too early to be thinking about stopping programs to promote growth. “All countries must coordinate their actions and to strengthen their support to the economy, is confident Jiabao. “The world economy is stable and is beginning to brighten, but recovery is slow and there are many uncertainties and destabilizing factors,” he said. Against the backdrop of problems that can be seen in many developed countries, China remains stable, and growth of the country is threatened, he graduated Jiabao. The country of China was diced as the second largest economies of the world, because of large number of US and European investments in the last 10 years.
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The U.S. and China are still the two best places in the world for investment in renewable energy sources (RES), shows the latest global survey of Ernst & Young “renewable energy – an index of the attractiveness of countries. Currently, when restoration began to speak of the world economy by the global economic crisis, access to capital remained the biggest challenge facing the sector of renewable energy sources. The U.S. budget for 2011 announced in February 2010, includes a commitment in 2012 to double generating capacity of renewable energy. The country’s interior ministry also has plans to develop such energy sources. China changed its law on renewable energy sources to help increase the amount of green energy. The Chinese government plans to establish a new National Fund for funding scientific research and development of products and systems sector of renewable energies.
Shortage of capital
At a time when capital markets are under pressure and expectations are that this situation will persist for some time, access to capital will be the most serious challenge. “Energy markets in the world are increasingly competing for the attention of new investors. There is also competition between different infrastructure sectors and without inadequate capital. Economic crisis, in particular the crisis in lending led to a contraction of the activities of investors.
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The Chinese Premier Jiabao proposed draft budget envisages a deficit of 1.05 trillion. dollars, or about 2.8 percent of gross domestic product this year. Negative balance due to increased costs for construction of housing for the poor and for rural and agricultural regions in the country, transmitted Market Watch. About 850 billion yuan will be the deficit of the central government, and another 200 billion will be generated by the local authorities plans show the prime minister. In 2009 the budget deficit reached 950 million dollars, which is highest in absolute value for the last six years. Gross domestic product rose by even 8.7 percent to 33.5 trillion. yuan, the government estimates show.
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The Germany’s exports fell by 18.4% in 2009 This is the biggest decline since 1950, according to figures released today. Recently, China officially overtook the lead economy in Europe as the largest exporter in the world, forward Agence France-Press. “According to information from the Chinese Ministry of Commerce, Chinese exports totaled over 1.2 trillion. dollars, and Germany – to 1.12 trillion. dollars last year, said National Statistical Office of Germany. Germany’s total exports amounted to 803.2 billion euros (1.1 trillion. Dollars), while imports decreased by 17.2 percent to 667.1 billion euros compared to the level of 2008. But the country has seen a trade surplus of 136.1 billion euros in 2009, although it is less than in 2008 when it was 178.3 billion. Germany’s exports increased by 3.4 percent in December over the same period the previous year. This is the first growth on an annual basis from October 2008 onwards.
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The U.S. president Barack Obama said he was ready to take a robust stance against China. The reason for this is to make opening the Chinese market for American goods. At a meeting with senators Democrats, Obama has promised to provide constant pressure on China to complete the package of trade agreements between the two countries. Barack Obama pointed out that there was no intention to take a position on protectionism against China. Would be a mistake to close the road to the Chinese market, the U.S. president added, quoted by the BBC. Recalled the tension in relations between the U.S. and China has grown in the last week because of the transaction for the sale of American weapons to Taiwan. Came from China and cyber attacks against American sites. Meanwhile, Chinese authorities have warned that relations between the two countries will be dealt a serious blow if the U.S. president met with the Dalai Lama. In the words of Barack Obama, however, the approach of America lies in the fact to observe existing rules and to provide a permanent impact on countries like China to open on that more and more their markets.
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