Faber Says China Slowdown is Biggest Risk to Markets

With a stock market crash in China, an imminent bailout deal in Greece and earnings season kicking off in the U.S., there’s no shortage of concerns bouncing around global markets. And one of those has long-time bearish investor Marc Faber particularly worried.

“We have now hard evidence that the Chinese economy is hardly growing at the present time,” the publisher of The Gloom, Boom & Doom Report said on CNBC’s “Trading Nation.”

As Faber sees it, since China makes up almost half of the world’s industrial commodities consumption, an economic slowdown there could have a wide ripple effect.

“If China slows down, the demand for industrial commodities goes down. It affects all the resource producers: Argentina, Brazil, the Middle East, Central Asia, Africa, Australia,” Faber said Monday. “That can have a huge impact on the global economy.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza