Markets see their worst quarter in four years - http://www.bbc.co.uk/news/business-34401041 But the numbers for the major markets from July to September make for sobering reading. Dow - 7.9% FTSE 100 - 7.04% Dax - 11.74% Nikkei - 14.47% Shanghai Composite - 24.69%
China will continue to unwind from the over-geared stocks bubble. It's all downhill from here until at least after Chinese New Year in my opinion. That said, I am not expecting another -25% quarter but it could be another 15% to go. The Dow has another 10% to go, all hinges on the rate rise.
"Unwinding a rigged system would be painful since prices would fall, and the government's response to July's crash shows that it fears falling prices. "
PMs in AUD have a nice tailwind behind them at the moment due to the sharp fall in AUD (No doubt resultant from the drop in China) but also the gold price in USD is up a bit and may have found a support level. Gold in AUD is up around 3% just in the last day or so. Good time to be in PMs if you're an Aussie methinks.
Thursday down another 7% Mainland Chinese shares suspended from trading after 7% plunge - http://www.bbc.co.uk/news/business-35248798 http://money.cnn.com/2016/01/06/investing/china-stocks-halted/index.html
Surely this situation in China is a perfect example of why market intervention doesn't work and only draws out the pain longer. Lets get this crash over with so we can bury the dead and move forward again!
Surely they'll be blow-back from this crap on Australia given China is a biggest trading partner. I'm surprised the AUD has been as strong as it has through the past few weeks/months. Still believe the floor will fall out of the AUD at some point though
For sure. But the AUD dropping 2.5 cents in just a couple of days is a decent start wouldn't you say!?
It's still only retracing previous gains made over the past few months. Need to see a drop below 69 cents