As Goes China….
While the crisis in Europe and the slowdown in the United States seems to get all of the attention lately, the other big story is of course China. China has been a leading indicator for global markets for some time now and as you can see in the chart, and hopefully have noticed for some time now, they peaked over a year ago. We are seeing the same signs in raw materials such as copper and oil just as we are seeing them in everything but US Dollars and US Treasuries. Until we see a firming up in either the US, Europe, or emerging markets most notably China we won’t be seeing a lasting rebound in global equity markets.
Shanghai Stock Exchange and SP500
Happy Trading,
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