China Slowing Is (Really) Bad News For Australia

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Includes: AUSE, CROC, DAUD, DBAU, EWA, FAUS, FLAU, FXA, HAUD, IAF, UAUD
by: Hedgeye

Summary

The impact of China's slowing economy is spilling over into other countries in the region, like Australia.

Australia's real estate market had been red hot but has begun to slow.

“China went from $32 billion to about $15 billion [in real estate investment] – or about a 50% decline – in just one year,” says Hedgeye Housing analyst Josh Steiner.

With a huge economy like China’s slowing for nearly all of 2018, other countries were bound to feel the effects.

Case in point: Australia.

It has been one of the hardest hit as China has slowed – especially in residential and business real estate. And if China continues to slow – as Hedgeye predicts it will through at least early 2019 – that could mean bad news for Australia in the near term, according to Hedgeye Financials analyst Josh Steiner.

“China went from $32 billion to about $15 billion [in real estate investment] – or just about a 50% decline – in just one year,” Steiner explains in the video above.

“That’s a massive slowdown and just an enormous shift.”

WATCH THE VIDEO ABOVE FOR MORE.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.