It's all up to China tonight, and if early ETF indications are correct, today's US equity bloodbath is about to spill over right back into Chinese markets again, only this time without the benefit of circuit breakers making it an early close for local traders if they manage to push the market down 7% in 29 minutes.
Having correctly foreseen in September that "China's devaluations are not over yet" it appears Nomura's infamous 'bear' Bob Janjuah has also nailed The Fed's subsequent actions (hiking rates into a fundamentally weakening economy in a desperate bid to "convince markets that strong growth and inflation are on their way back").
Submitted by John Rubino via DollarCollapse.com,
One of the (many) fascinating things about this latest global financial crisis is that there’s no single catalyst. Unlike 2008 when the carnage could be traced back to US subprime housing, or 2000 when tech stocks crashed and pulled down everything else, this time around a whole bunch of seemingly-unrelated things are unraveling all at once.
Submitted by Lance Roberts via RealInvestmentAdvice.com,
China Matters
Over the past few days I have repeatedly heard the following statement:
“China isn’t that important as it is only 7% of the U.S. economy.”
While that may be a true statement in relation to the economy, it is a far different matter when it comes to the financial markets.
Update: China folds - CHINA SUSPENDS STOCK CIRCUIT BREAKER RULE
As we detailed earlier...