All Posts Tagged: yuan

U.S. Outlook: 2016 comes in like a lion

Scott Anderson
Chief Economist

It’s the New Year’s hangover that never ends. Granted we are only about a week into 2016, but so far it’s been a doozy.

Graph showing the dip in world market capital after the China sell-offChina’s Shanghai stock market plunged 7% twice this week after tripping new circuit breakers designed to staunch market panic, igniting a global stock market sell-off that erased some $3 trillion off of global equity market capitalization.

For more on the China market fallout, see highlights of my analysis below, followed by a link to the full U.S. Outlook report, delivered on Jan. 8.

Key observations:
  • Since last summer, global stock markets have erased about 11.2 trillion dollars in stock market capitalization.
  • The rate of decline in freight traffic in China from a year ago is now double the rate China experienced at the height of the Great Recession.
  • The gap between the on-shore and off-shore yuan is wider now than during the September swoon, suggesting more Chinese currency devaluation ahead.
  • This game of competitive currency devaluation tends to be a zero-sum game.
Click here to read my full report. Read More ›

World economics and the ongoing volatility in the equity markets

Wade Balliet
Posted by Wade Balliet
Investment Strategy
view of red (loss) and green (gain) ticker-tape stats on a black electronic screen

Events within emerging market economies have dramatically increased global market volatility.

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U.S. Outlook: Dispatches from China

Scott Anderson
Chief Economist
ChinaGraph

Just when the July employment report and the markets suggested smooth sailing for the Fed to lift interest rates as soon as September, China’s economic data and surprise yuan devaluation have muddied the waters.

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