China's financial slowdown hasn't made headlines of late, but that doesn't mean it’s over and that even residue effects won't spill into global growth and the U.S. market.
China's central bank ruled out a currency devaluation, but it took other measures to give its economy a boost - a 0.5 percent lowering of bank reserve which may have freed up $110 billion worth of yuan to enter the credit markets.
That may not have been enough, and the country’s financial slow recovery will continue to have a substantial effect on global markets.
China's economic growth went from 10 percent to seven percent with official forecasted growth being two to four percent, but as accurate data is hard to obtain from China, growth of between two and three percent may be more accurate. This is a little more than one percentage point below the expectations of the international Monetary Fund. In comparison the U.S. growth estimate is in the 1.7 to 2.25 percent range for 2016.
Financial experts look at the commodities to get a better read on how China is actually behaving and commodities across the board have been on the decline - not only oil, but also copper and nickel.