Global markets jittery amid signs of slowing growth
Smart investors will tiptoe into the share market with a greater sense of caution than ever this week as signals from around the world indicate that global growth and demand for the mainland's exports may be slowing.
The International Monetary Fund last week cut its predictions for global economic growth this year to 4.8 per cent from its forecast of 5.2 per cent made in July. Much of the weakness is coming from the United States and Europe, whose consumers buy the mainland's factory products.
Markets ended last week on a softer tone as investors worried that the mainland could further tighten economic policy in an attempt to cool the market, and those concerns could well intensify this week as Beijing opens the books on the third quarter.
Inflation still a worry
A batch of economic data will be released mid-week from Beijing, showing the latest price inflation, retail sales and investment data for the third quarter and September. Economic growth is expected to have slowed slightly, to about 11.5 per cent, from the second quarter's 11.9 per cent, but inflation continues to be a worry.