NEW YORK, May 2 (Xinhua) -- Investors are optimistic on the prospects for the Chinese economy and the overall global economy, a senior foreign exchange (FX) expert at Standard Chartered said here on Thursday.
Steve Englander, managing director and global head of G10 FX research at Standard Chartered, made the remarks during a market update seminar as China and the United States are stimulating growth by easing financial conditions, and the European economy has also fared better than expected.
The seminar was co-hosted by the China General Chamber of Commerce-USA, a non-profit organization representing Chinese enterprises in the United States with more than 1,500 members, and Standard Chartered in New York City.
"I think that there's more openness to the idea that Chinese policy-makers are determined enough and have the tools, and have put in place enough stimulus to get the Chinese economy or keep the Chinese economy growing at a reasonably decent pace," Englander said.
He said that their clients' confidence in China's economic performance has grown sharply since the start of the year.
"I'd say we're still on the optimistic side, but we have more company on the optimistic side (now)," Englander said, adding that he believes China has "plenty of tools that they can put in place."
China's gross domestic product (GDP) growth notched a rate of 6.4 percent year over year in the first quarter (Q1), topping market forecasts and on par with that of the previous quarter.
China has rolled out a raft of targeted pro-growth measures, with tax cuts for individuals and money-starved small firms, funds pumped to major projects to fix weak areas and restrictions eased for foreign investors.
In terms of the United States, the senior banker said bullish investor sentiment on the country's economy has also been conspicuous. "Things like employment, all the other more stable numbers, should continue pretty much the way it's been going."
The two trends combined have boosted his outlook for the global economy.
"The U.S. is stimulating in effective terms. Financial conditions are easy. The economy is picking up," he said.
He also mentioned that recent economic data in Europe turned out to be stronger than expected, boosting their expectations on an economic recovery in the region later this year, which would be "the biggest room for surprise."
Seasonally adjusted GDP rose by 0.4 percent in the euro area covering 19 European countries for Q1, compared with the previous quarter, according to a preliminary flash estimate published Tuesday by Eurostat, the statistical office of the European Union.
The euro area economy grew 1.2 percent year-on-year in Q1, the same increase as in the last quarter of 2018 year over year.
"We do expect some kind of recovery towards the end of the year. And I think that would be where there is the biggest room for adjustment in terms of expectations, in terms of market pricing, in terms of actual performance relative to where the market was," Englander said.
