Market volatility: Is it all about turmoil in China?

In this week’s market update:

  • China’s economic weakness ignites volatility in global financial market this week
  • A ‘buying on the dips’ opportunity follows this week’s dramatic drop
  • What does the revised U.S. 2Q GDP number mean for the timing of the interest rates hike?

On Market Week in Review, Chief Investment Strategist Erik Ristuben discusses an extremely volatile week in global financial markets, stemming from the fact that China’s economic weakness may be worse than some had expected and may potentially hinder the U.S. and European recoveries. Ristuben notes Russell Investments’ view on the dramatic drop this week as a ‘buying on the dips’ opportunity, as Chinese leaders look for ways to stimulate their economy and major regional markets show signs of improvement as the week ends.

He concludes this week’s episode by addressing the likely timing of the U.S. interest rates hike, following Thursday’s announcement that 2Q GDP was upwardly revised to 3.7%. While Russell Investments’ market strategists have updated their view in favor of a December rate hike, Ristuben cautions investors not to rule out September timing quite yet, as other data including an important jobs report next week might influence the Federal Reserve’s decision. Alexandra Davis hosts this week’s market update.