China & Global Economy: Update & Implications Posted by AVCU on 4:49 PM

by Robert F. DeLucia, CFA, Consulting Economist for MEMBERS Capital Advisors, Inc.

Members Capital Advisors consulting economist, Robert DeLucia, says that financial markets are likely to remain in an extremely volatile trading range in future months until there is greater clarity regarding the outlook for economic growth and until fears of a double-dip recession diminish. In part, DeLucias cites China's economic status as responsible on the basis that . . .

1. China is increasingly becoming the primary engine of world economic growth;
2. China is the primary driver of world commodity markets and prices of natural resources;
3. As the largest holder of foreign exchange reserves, China is a critical factor in the market for sovereign debt,including U.S. Treasury securities;
4. China is a major driver of world trade;
5. China at the center of growing tensions over currency manipulation and trade protectionism; and
6. China is increasingly perceived as a leader among global equity markets.
   

DeLucia's latest "Economic Commentary" addresses some of the critical questions
involving China and the world economy. Future reports will continue to address important trends within China and the implications for the global economy

.