Latest on Fed interest rate hike timing and global market news

In this week’s market update:

  • What should investors keep in mind when China’s markets reopen on Sept. 7? Could China be facing an economic crisis?
  • What key variable will most likely influence the timing of a U.S. Fed interest rate hike, and what does the recent Beige Book released by the Fed say about current economic conditions in the U.S.?
  • The eurozone recovery appears to be on track, but will progress be hampered by global market turbulence?

On this week’s Market Week in Review video, filmed on Thursday, Sept. 3, Chief Investment Strategist Erik Ristuben reviews China’s market news, specifically the drastic market swings by the Shanghai Composite Index before China’s markets closed two days early this week to commemorate the end of World War II. However, Ristuben notes that these swings may not be indicative of an economic crisis or threaten U.S. and eurozone market recoveries. He further explains how China’s government fiscal stimulus could have a positive impact on economic growth in China.

Turmoil in the global markets, spurred perhaps by China’s economic issues, has delayed many predictions on the timing of a U.S. Fed interest rate hike. Ristuben shares why he believes market volatility is the one key variable influencing the timing of a Fed rate hike and reviews the predominantly positive U.S. economic data released in the latest Fed Beige Book. Blair Lowman host’s this week’s episode which concludes by reviewing Europe’s economic data and discusses why recovery in the eurozone likely will continue to progress even in the face of global market volatility.