• 4 minutes Phase One trade deal, for China it is all about technology war
  • 7 minutes IRAN / USA
  • 11 minutes Shale Oil Fiasco
  • 16 minutes Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 7 hours Which emissions are worse?: Cows vs. Keystone Pipeline
  • 1 hour We're freezing! Isn't it great? The carbon tax must be working!
  • 1 hour Trump capitulated
  • 8 hours Thanks to Trump, the Iranian Mullahs Are Going Bankrupt
  • 14 hours Indonesia Stands Up to China. Will Japan Help?
  • 28 mins Beijing Must Face Reality That Taiwan is Independent
  • 2 hours US Shale: Technology
  • 3 hours Gravity is a scam!
  • 19 hours Yet another Petroteq debt for equity deal
  • 21 hours Three oil pipeline projects inch toward goal-line for Canada
  • 2 hours Trump has changed into a World Leader
  • 3 hours Turkey Muscles-In on Israel-Greece-Cyprus EastMed Gas Pipeline Deal. Erdogan Still Dreaming of Ottoman Empire II.
  • 3 hours What's the Endgame Here?
  • 11 hours Prototype Haliade X 12MW turbine starts operating in Rotterdam
Mad Hedge Fund Trader

Mad Hedge Fund Trader

John Thomas, The Mad Hedge Fund Trader is one of today's most successful Hedge Fund Managers and a 40 year veteran of the financial markets.…

More Info

Premium Content

The Tea Leaves for China Look Ominous

The truly significant move in the capital markets last night was the atrocious performance of the Shanghai market (FXI), which plunged 3.4%.

The index is now off more than 30% in the past 14 months, and 21% this quarter alone.

Why should I care?

Because the Chinese stock market has been a great leading indicator for risk taking generally and global stock market performance specifically.

It's August, 2009 top presaged our own by some nine months, and sent up distress flares that equities were not the place to be during 2010. This isn't just data mining.

So many American companies generate profits by selling into China, cut costs by outsourcing manufacturing, or source products there (think Wal-Mart), that the two economies are now essentially joined at the hip.

Some weak leading economic indicators did the dirty deed last night. But there has been a rising tide of concern that the People's Bank of China's tight money policy might not only pop the real estate bubble, but the broader economy as a whole.

Investors might also be figuring out that the coming revaluation of the Yuan may be negative for the profits of the Middle Kingdom's companies.

Another 500 pound weight on the market is the coming IPO for the Agricultural Bank of China, the largest in history.

Read the tea leaves there, and the future looks ominous.

By. Mad Hedge Fund Trader




Download The Free Oilprice App Today

Back to homepage




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News