Global equity indices are off to a volatile, yet ultimately optimistic start, as today kicks off the second quarter of 2015. While positive data in both Europe and Asia may be driving sentiment, in the absence of any grand narrative it is too soon to tell if equities are being led higher by optimism, or if instead today’s price action is largely driven by calendar based portfolio rebalancing.
In China, the Shanghai Composite hit seven year highs, rocketing 1.7% higher in today’s trading after signs the Chinese economy is not in as dire condition as many market participants have feared. With prior rumblings from Chinese policy makers indicating an appetite for further interventions as the Chinese economy struggles to hit its 7% grow target this year, both the official and HSBC’s final PMI surveys surprised analysts to the upside signalling that manufacturing activity in the world’s second largest economy was not decelerating as rapidly as previously thought.
Read the rest of the article D Is For Disappointment