David Gardner 3/10/24 David Gardner 3/10/24

St. James’s Place Week Watch 30th September 2024

In this week’s WeekWatch, the SJP Team tackles the Stock Take, Wealth Check and In the Picture. In particular, the SJP team focuses on the Chinese, US, EU, and UK economic updates and more. We’ve taken the time to put together the takeaways from the update.

Stock Take

China

Since it was opened up and reformed in the late 1970s, China’s economy has grown at an average rate of 9% annually.
China risks missing its annual growth target of around 5%. Therefore, markets reacted enthusiastically to the People’s Bank of China unveiling a major package of aggressive measures designed to stimulate the economy.
- Plans to cut the amount of cash banks must hold in reserve are estimated to free up around one trillion yuan ($142 billion) for new lending.
- Efforts to boost the property market by cutting borrowing costs for existing mortgages and lowering the minimum down payments on all homes to 15%.
- Global stocks rose to a record high on Tuesday, while major US indices also hit closing highs as investors cheered the news.