In September, global markets are expected to resume their fall. The US Federal Reserve System, Greece, and China are the risk factors.
The statement of Fed Vice Chairman Stanley Fischer that it is early to talk about raising the rates in September fueled rumors of a possible delay. Experts suppose that deterioration in the US economy may frustrate the plans to hike the rates. A rise is anticipated either in September or in December. However, due to turmoil in financial markets, it is too early to start the process in September and too problematic to start it in December as there will be low liquidity. Economists consider October.
Moreover, in Greece, the fifth election in six years is scheduled for September 20. On the background of discontent among the Greek citizens and the Syriza coalition, caused by creditors’ conditions, Alexis Tsipras resigned on August 20. Currently, the country is governed by top Supreme Court judge Vassiliki Thanou-Christofilou who became Greece's first female prime minister. There may be a slight gap between Syriza and New Democracy. The implementation of the required reforms is in question now because of the instability in the country.
Meanwhile, Shanghai Composite slid by 3% owing to rumors about the end of asset purchases by financial institutions controlled by Beijing. However, the Chinese authorities tried to calm down investors and announced that 50 brokerages will provide 100 billion yuan or $15.7 billion to the nation’s market rescue fund and increase stock buybacks. Still, it is unclear for how long such support will last.
