Oliver’s insights:- China’s big stimulus – will it work? And what does it mean for Australia?
This week’s edition looks at China’s pivot from incremental and modest policy stimulus to providing more aggressive support for its economy.
Introduction After a roughly 35% plunge from their February high point to their lows around 23rd March, global and Australian shares have had a 15-20% rally. What’s more this rally has occurred despite increasingly bleak economic data ranging from plunges in business conditions surveys or PMIs (see the next chart) to a record 10 million surge over two weeks in claims for unemployment payments in the US. Volatility remains very high but at least we …