Equity Sell-Off Next YrAs China Starts Printing Money Analysts

Global equities are set to enter a difficult period in the second half of 2017 and a confluence of three major factors will see a sell-off in stock markets, according to analysts at Credit Suisse. 

"(We) anticipate a sell-off in equity markets," an equity research team, led by Andrew Garthwaite, at Credit Suisse said in a note on Friday morning.

 Gazing into the distance, the team sees investors being confronted by sharply accelerating US wage growth. Wages remain a hot topic in the US seven years after the global financial crash. The issue has been raised on the presidential campaign trail in the US and major retailers such as Target and Wal-Mart have already announced an increase to wage floors.

China printing? 

Secondly, Credit Suisse suggests that fears over a credit binge in China would have reached a head by mid-2017. It believes that Chinese lenders may have already hit a loan-to-deposit ratio of 100 %. visit us http://www.ripplesadvisory.com/aboutus.php or Get Two Days Free Trial just on One Missed Call @98-27-80-80-90

This ratio essentially shows a bank's total loans against its total deposits. A high number means that a bank might not have enough liquidity to cover any unforeseen funding needs. The bank said that the country might thus be "unable to roll-over NPLs (non-performing loans) without printing money."