Weekly Market Update: 21 January – Markets buoyant ahead of Year of the Rat
Watch Tom Stevenson’s latest update as shares post a bullish start to the year, China is in focus ahead of the Year of the Rat and, here at home, soft data point to another rate cut.\n\nCapital at risk. The value of investments and the income from them can go down as well as up so you may get back less than you invest.\n\nFacebook: https://www.facebook.com/FidelityUK/ \nTwitter: https://twitter.com/Fidelity_UK \nLinkedIn: https://www.linkedin.com/company/fidelityinternational/\nInstagram: https://www.instagram.com/fidelityinternational/
Chinese exchanges end the year of the rat with strong growth in indices
Chinese stock markets closed the last trading day of the year of the rat with favorable gains, hitting five-year highs.
The SSEC Index closed the day with 1.43% gain to 3655.09 points, while the SZSE climbed 2.12% to 15,962.25 points. The ChiNext Index also posted strong gains of 2.39%.
A total of 2,457 shares showed gains, while 1,385 stocks dropped in value. Trading in China will resume only in a week.
CSI 300, composed of the 300 largest and most liquid Class A stocks, soars 2.14%.
Its figure has renewed its maximum since October 2007.
The highs of the last trading day of the year are very different from how things were 12 months ago, when investor panic over news of COVID-19 plunged the Shanghai Stock Exchange Index by 7.72%..
Despite a chilling start, the year of the rat turned out to be bullish for the Chinese capital market.
Shanghai index is up 19.43% over the year, while SZSE is up 44.17%. The ChiNext Index scores even more impressively, up 71.21%.
Some investors have interpreted Wednesday’s bullish performance as a good sign to trade in the coming year of the bull, which has a psychological reference to the bull market.. They also cited China’s fundamentals as the reason for their positive outlook on trade in the first quarter..
China’s CPI, the main indicator of inflation, fell 0.3% in January.
China’s economy is projected to grow 8.1% in 2021, while global GDP is expected to expand 5.5%, the IMF said in its latest economic forecast..