16 Apr

J.P. Morgan Says Most Chinese Equity Gains behind Us

WRITTEN BY Mohit Oberoi, CFA

J.P. Morgan

In an interview with CNBC, a J.P. Morgan representative warned that Asian equity markets could deliver only modest returns for the rest of the year. Mixo Das, Asia equity strategist at J.P. Morgan, said, “I think most of the gains for this year in Chinese as well as Asian equity markets are already behind us. From here, it’s going to be more of a difficult slog. We still see gains but it’s going to be a much more volatile process.”

J.P. Morgan Says Most Chinese Equity Gains behind Us

Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

Earlier this year, Goldman Sachs (GS) echoed similar views about US equity markets. However, US equity markets have been trending upwards although the pace of the increase hasn’t been as sharp as we saw at the beginning of the year.

What’s been driving the markets?

Optimism over US-China trade talks, the Fed’s dovish stance on 2019 rate hikes, and signs of a bottom in the Chinese economy have helped propel global markets higher this year. Plus, US markets were clearly oversold in the fourth quarter amid expectations of a sharp slowdown in 2019 economic growth. However, the economy wasn’t as terrible as some observers were forecasting.

The SPDR S&P 500 ETF (SPY) is up 16.5% for the year, based on yesterday’s closing prices. The FAANG pack has also moved higher, recouping its fourth-quarter losses. NVIDIA (NVDA) and Advanced Micro Devices (AMD) have gained 38.5% and 48.0%, respectively, year-to-date.

While J.P. Morgan expects Chinese markets to remain sluggish in 2019, some observers expect the market rally to continue.

Latest articles

15 Jul

Will Amazon Prime Day 2019 Break 2018's Record?

WRITTEN BY Jitendra Parashar

This year, Amazon extended its Prime Day to 48 hours instead of the 36-hour sale in July 2018, making the 2019 event the longest Prime Day ever.

In a series of tweets on Monday, Trump today weighed in on China’s GDP growth, which came in at a 27-year low.

15 Jul

OrganiGram's Third-Quarter Earnings


On Monday morning, OrganiGram's third-quarter earnings came in as a bit of a let-down. Here's why.

Trump is reportedly planning to increase the content of US-made steel in federal projects, which would be a lifeline for US steel companies.

Huawei is preparing for “extensive layoffs” in the US, which could put the US-China trade deal on the rocks.

With Q2's Netflix earnings just around the corner, here's what you can expect from the online streaming giant and the broader streaming space.