China fears sap investor sentiment

Chris Papadopoullos
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GLOBAL investor sentiment took a turn for the worst in September, as fears over China took the outlook for Asia excluding Japan to its most negative since 2009.

Investor confidence has been heavily impacted by recent extreme volatility in Chinese stock markets, with the Sentix’s measure of sentiment toward Asia excluding Japan yesterday falling to minus 4.3. Sentix’s barometer of optimism on the Eurozone economy over the next six months dropped nine points to 12.3 yesterday, its lowest level since December 2014. Sentiment on Germany, the Eurozone’s largest, saw a similar decline.

Germany is a big exporter to China.

“Investors now see the clouds shadowing China as well as the other emerging markets as a major burden for the Eurozone economy,” Sentix said. The outlook for global growth was also dented by Latin America where investors’ perception of the current situation is at its lowest for over a decade.

“While the skies are darkening for Latin America and Eastern Europe, major corrections are being made to economic outlooks for the regions previously functioning as stability anchors, namely the USA and the Eurozone,” Sentix said.