Bill Grosssays China’s stock markets are likely to drop 5 percent to 6 percent when they open Friday, after trading was stopped for the second day this week because falling shares tripped a circuit breaker.
“Based on the ETF in the United States, China is expected to be down 5 or 6 percent,” Gross, co-manager of the $1.3 billion Janus Global Unconstrained Bond Fund
Chinese regulators suspended a rule that forced local stock exchanges to shut Thursday. The move added to worry that policy makers are struggling with how to contain the months-long turmoil in its financial markets as growth slows for the world’s second-largest economy.
Global stocks headed for their worst start to a year in at least 28 years, with the Dow Jones Industrial Average dropping almost 400 points on Thursday, as turmoil emanating from China spread around the world and billionaire George Soros warned that a larger crisis may be brewing. Comments by Soros exacerbated market jitters after he told an economic forum in Sri Lanka that global markets are facing a crisis and investors need to be very cautious.
Central banks, especially in places like China, have been manipulating economies, artificially driving up asset prices and setting up markets for a fall, according to Gross. Investors should probably seek safe havens, such as Treasuries, to ride out the current turmoil, and expect long-term low returns with global economies headed for protracted slow growth, he said.
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.