Global Stock Markets Surge: China's Rally Continues with No End in Sight, Say Analysts
Global Stock Markets Surge: ...
Subscribe to Newsletter

Global Stock Markets Surge: China's Rally Continues with No End in Sight, Say Analysts

20 May 2024
2158
2 min.
6
Global Stock Markets Surge: China's Rally Continues with No End in Sight, Say Analysts

Global Stock Boom

Global stock markets are experiencing a significant surge, with many indexes nearing and surpassing record highs. This trend has prompted analysts to reconsider the traditional investment strategy of "sell in May and go away."

Recently, 14 of the world's 20 largest stock markets reached all-time highs, according to Bloomberg. In the US, the Dow Jones Industrial Average closed above 40,000 for the first time, while major indices in Europe, India, and Japan are also at or near record levels. Additionally, the MSCI ACWI Investable Market Index, tracking large and mid-cap companies globally, set a new record high on Friday.

China's stock markets, which started 2024 in a downturn, are also booming. The CSI300 index, which tracks 300 large and midsize stocks in Shanghai and Shenzhen, is up 7.4% year-to-date, and Hong Kong's Hang Seng Index has surged 15%.

Factors Driving the Surge

Global stock growth is driven by strong economic fundamentals, positive corporate earnings, and potential interest rate cuts, which encourage investors to move money from bonds to stocks. In China, however, the rally is largely due to attractive valuations after years of declining prices.

Chinese stocks are now valued similarly to their pre-pandemic levels, according to Andrea Cicione, head of investment research at GlobalData TS Lombard. Some investors are shifting their portfolios from India to China, taking profits from gains in the Indian market, where the Sensex and Nifty 50 indexes have surged about 20% over the past 12 months.

High-profile investors like Michael Burry and David Tepper are now investing heavily in Chinese stocks. Ray Dalio also expressed confidence in Chinese investments due to the low valuations.

Government Stimulus and Future Outlook

Recent economic stimulus measures by the Chinese government have boosted market confidence. On Friday, the government introduced robust actions to address the property market crisis, emphasizing housing sector stabilization, according to Bank of America analysts.

However, Cicione notes the stimulus responds to economic pain evident in April's data, predicting a short slowdown before benefits emerge, improving consumer confidence and exports.

LPL Financial strategist Adam Turnquist believes the bull run in China's stock market may persist, fueled by ongoing economic support and investor momentum.

Persons3 and Companies3 in the news

American billionaire hedge fund manager
1 place
American investor and hedge fund manager
2 place
Founder of the Bridgewater Associates
3 place
Dow Jones
1 place
Bank of America
2 place
Bloomberg L.P.
3 place
Section:
Source foto:
flickr.com
Rating companies
Instagram
15 Mention
Tesla
14 Mention
Netflix
13 Mention
JP Morgan Chase
11 Mention
Ford Motor Company
11 Mention
Amazon
10 Mention
TikTok
8 Mention
White House
7 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
8132243428
Died this year
27683870
Born this year
68107220