Stephen Innes
SPI Asset Management
After Chinese authorities unveiled a massive 10 trillion yuan ($1.4 trillion) lifeline aimed at easing local government debt, markets were anything but impressed. Chinese stocks and the yuan took a nosedive as investors, primed for the fireworks of a big stimulus splash, saw little more than a sputtering sparkler. The lifeline felt more like a quick fix than the full-blown stimulus bazooka the markets had hoped for—a response met with collective eye-rolls.
The misfire rippled through global markets, with oil prices slipping on fears that China’s economic slowdown could keep a tight lid on commodity demand.
Meanwhile, the looming Trump tariffs are stirring up another layer of uncertainty. Will he soften his stance or bring back his hardline “America First” agenda? That remains to be seen, but one thing’s certain—China won’t be throwing around cash unless there’s a clear endgame in sight. At this point, the economic light at the end of the tunnel is starting to look suspiciously like an oncoming train rather than an exit.
SPI Asset Management provides forex, commodities, and global indices analysis, in a timely and accurate fashion on major economic trends, technical analysis, and worldwide events that impact different asset classes and investors.
Our publications are for general information purposes only. It is not investment advice or a solicitation to buy or sell securities.
Opinions are the authors — not necessarily SPI Asset Management its officers or directors. Leveraged trading is high risk and not suitable for all. Losses can exceed investments.
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