To see that surge motivated because of that, you too you would ask the question. Asian markets rallied last Friday. Thursday, the European Central Bank's president Mario Draghi said that the central bank could do another large stimulus plan, so, basically, more easing. This was welcomed nicely by Europe and Wall Street, but also, from... Asia. And this easing policy, normally letting know that the Europe isn't in a so good shape that banks have to do easing and stimulus to help the economy, is finally making many markets happy, Asians included. After all, it's not really their manufacturing numbers that will keep them happy. The numbers: NIKKEI got +2.11% or +389.43 pts at 18,825.30 pts. HSI is at 23,151.94 pts, with +1.34% or +306.57 pts. ASX 200 scored +1.67% or +87.72 pts at 5,351.56 pts. Shangai Composite did +1.32% or +44.45 pts with 3,413.19 pts. Finally, KOSPI got +0.86% or +17.40 pts at 2,040.40 pts.
Nice to see some gains there. It's gonna be interesting to see how the China - UK business deals will affect things in the coming weeks. What with the UK steel industry suffering heavily at the moment I've just got the image of a see-saw in my head: UK on the downside, while China on the up.
Well after wining and dining President Xi Jinping for the week, David Cameron announced that the UK had secured 40 Billion worth of trade deals with China, although it seems he was exaggerating a bit. Whatever the true figure, China is now the UK's sixth biggest Export market and it looks like Cameron is looking to expand our business dealings with China as much as possible. The see-saw analogy rings true with me.
It doesn't feel good for U.K., honestly. From what I seen of this trade deal, at first, I think the market reception wasn't the best you could expect from it. Furthermore, I think being even more dependent of this country is a bad idea. Look at the Australia's industry today: they're doing commodity exchanges as U.K. is looking forward to do. They exchange copper since years to China and other Asian markets. And right now, they suffer even more than China suffers, if you talk about market figures. So when a country that done this for years isn't a good shape today for the same type of exchange, you have no reason to follow it.
This is the way the markets work, we are all depending on each others and now the Asian markets might be high, but it doesn't mean it will be like that in the future.
But, sometime saying stop is a good thing as well. I know we are in a globalized market that are much more broad than it used to be, and I don't want that much to close it down. But come on, each time we say it might be a not-so-good idea to have done that deal, it feels like we criticize the globalization. No, it's not especially that. But when you do trade exchanges, you must be either both winners, or at least yourself you win something. UK is in my opinion doing wrong and it's not because "China" is doing the deal that it becomes suddenly profitable.
