China’s Stock Investors Are Still Hooked on Economic Stimulus
It’s not just China where bad news is still “good” news for equity investors.
The USA might be on methadone right now but investors are still addicted too to what central banks are selling. It is true however that “good” news is mostly good news for American stock investors these days and that is a kind of progress.
Stocks started the week lower after improving data prompted traders to pare back their bets for additional stimulus. The Shanghai Composite Index rallied the next day after the central bank injected cash into the financial system, alleviating concerns over a liquidity crunch.