While the share markets have recovered from previous weeks and US stock have mostly recovered, there was a dip on Tuesday due to energy and oil prices sliding.
Further, the US trade deficit rose by 7.6% in September to $43 billion from August. This was up more than expected and was due to weak exports to Europe, China and Japan.
While Australian share market has recovered from previous weeks’ lows, it still seems to be basically going sideways. Australian equities gained 2.2% last week and small caps 0.7% resources as expected were flat.
China it seems will not meet its 7.5% target this year. The growth rate is likely to be 7%. There is evidence that there is jobs growth. Many of China’s industries such as automation, technology and telecom are still doing well. Sectors such as housing and heavy industry are still struggling and this will impact on the Australian economy. This means we need to be cautious on commodities and resources.