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  • Writer's pictureKevin Hurley

Marketbites: Chinese Stocks Tumble

MARKET PERFORMANCE:
 

Portfolio Manager Commentary:

Stocks rose on Monday as traders added on to the impressive 4% gain seen last week. This week investors are paying close attention to earnings reports coming out from nearly a third of the S&P 500. Some of these companies include Alphabet and Microsoft reporting earnings today and Apple and Amazon reporting on Thursday.

Chinese President Xi Jinping secured an unprecedented third term as leader of the People’s Republic on Sunday. As a result, U.S.-listed Chinese tech stocks took a sharp dive Monday due to Xi’s tendency to impose tough restrictions on these companies. A couple companies that were affected include Pinduoduo, which fell 25%, and Baidu, down 13% on Monday.

Chart of the Day:

The chart below highlights the history of central bank gold buying and selling over the past 50 years. There have been three trends during this time. From 1971 to 1988, gold demand had been fairly net-neutral. This led into 1989 to 2009 where significant gold selling took place, predominantly from developed markets. Lastly, starting in 2010, there was a major shift to purchasing led mainly by emerging market economies. Read more about this history here.

Source: WSJ

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