Chinese stocks are outperforming the US, but watch out for 'structural issues,' expert warns

The Shanghai composite posted its best day in nearly four years, and the, an ETF that tracks some of the largest China-based companies, hit its highest level since June. That ETF is outperforming U.S. stocks this year — gaining 15 percent compared with the S&P 500's 11.5 percent — but one expert is urging caution.

"China still has a number of structural issues that it has to face. Now of course it's slowing down very slowly and it continues to put out better numbers than the U.S. But the China story and the [emerging markets] story is now very overcrowded as a trade, so I would be careful there," she added. "Technically speaking we've broken not only an uptrend going back since last year, but we got above $43.50, which has held since last spring. So it's been a big breakout of late," he said.

"I do see some negatives in the near term meaning it has moved up a bit too far too quickly. Forty-six dollars is a big level. It's really a 50 percent retracement of the entire move down since last year."

Tariffs make the dollar stronger and more jobs in America

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

Chinese Stocks Jump After U.S. Postpones Tariff IncreaseMainland Chinese shares surged on signs of easing trade tensions with the U.S. and top-level support for the country’s financial sector. The new World Masters! So this trade war with China - which disrupted the entire global economy - has actually had little to do with deficits & much to do with giving American banks, insurance companies, stock brokers, Visa & Master Card access to China’s economy. Who’d have thought? America’s farmers?
Källa: WSJ - 🏆 98. / 63 Läs mer »

Huawei president promises not to spy on US as Trump considers banning the company's equipmentRen, whose daughter is being held by Canada, denies U.S. allegations that the company aids Chinese intelligence by building a backdoor in its devices. '... but we could if we wanted to.' More lies Never ever believe in what the communists say, just watch closely what they do.
Källa: CNBC - 🏆 12. / 72 Läs mer »