Oliver’s Insights – China’s Share Market Volatility

In the latest “Oliver’s Insights”, Dr. Shane Oliver looks at the recent volatility in the Chines share market, and the affects it may have on our economy.

The key points in the article are:

  • Just as the rise in Chinese shares had little economic impact it’s hard to see the pullback having a significant economic impact either.
  • Chinese economic growth is likely to remain “around 7%” with monetary and fiscal easing helping.
  • The volatility in Chinese shares represents a necessary correction. Large cap shares are not expensive.
  • The main dampener on commodity prices – and Australia’s terms of trade – is not China, but supply.

See Dr. Shane Oliver’s full article, China’s Share Market Volatility, for full details.

Oliver’s Insights – Greece After The “No” Vote

In the most recent edition of “Oliver’s Insights”, Dr. Shane Oliver addresses the implications of the Greek referendum result, and its likely affect on global economies.

The key points of the article are as follows:

  • The Greek “No” vote means more uncertainty ahead regarding Greece, with significantly heightened risk of a Greek exit from the euro.
  • The threat of a flow on to other Eurozone countries is likely to keep markets on edge in the short term. However, contagion is likely to be limited as the rest of Europe is now in far stronger shape than was the case in the 2010-12 Eurozone crisis and defence mechanisms against contagion are now stronger.
  • As a result we don’t see the Greek debacle derailing the European or global economic recoveries. So while the correction in shares looks like it might go further in the short term, the broad rising trend in markets is likely to continue.

See Dr. Shane Oliver’s full article, Greece After The No Vote, for full details.