“Overall, the final inclusion plan continues to look as aggressive as its proposal, marking another milestone in China’s capital market opening up,” Citi China equity strategist Jerry Peng said in a note dated Thursday.
Related: U.S. Stocks Up for Ninth Straight Week
Global Rebounds in the Works?
A rise China equities is also fueling optimism that a global rebound could be underway, according to Goldman Sachs Group Inc. Chief Economist Jan Hatzius, who cites that while growth is lukewarm, the investment firm’s current activity indicator in February is slightly above downwardly-revised numbers for December and January.
“Some green shoots are emerging that suggest that sequential growth will pick up from here,” Hatzius and Sven Jari Stehn wrote in a note dated Feb. 26.
Earlier this year, the International Monetary Fund lowered its global growth forecast on Monday, pointing to ongoing trade wars dampening China’s economic outlook as well as rising interest rates in the United States. The IMF trimmed its growth expectations to 3.5 percent from 3.7 percent. Global growth outlook for 2020 was also cut to 3.6 percent from 3.7 percent.
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