There are several important economic indicators that investors should watch this week:
- German (EWG) ZEW economic sentiment
- Eurozone (EZU) (HEDJ) ZEW economic sentiment
- US (VFINX) (IWM) retail sales
- US crude oil inventories
- China (YINN) consumer price index
- China (FXI) (MCHI) monthly new loans
Performance of ACWI
The performance of the iShares MSCI All Country World Index ETF (ACWI) depends on the performance of the above global indicators. It’s important for investors to track the performance of these indicators to identify the movement of the global market.
The most important indicator for this week is China’s monthly new loans. According to data from the People’s Bank of China, China’s (FXI) (YINN) (MCHI) new credit growth is increasing. In January 2016, new monthly loans stood at 2,510 billion yuan, the highest since August 2015. In August 2016, new monthly loans stood at 948.7 billion yuan. The surging new credit is a warning sign for global investors. Many fund managers have warned that the rising new monthly loan figures are a warning sign for the global (ACWI) (VTI) economy.
You may also be interested to read, Ray Dalio Predicts ‘Dangerous Situation’ in the Debt Market.