By Alex Christensen The Fed’s Thursday policy decision is clouded by data that justifies both hawkish and dovish stances, leaving uncertainty over whether rates will rise this month. Either way, the response from markets may be more muted than you would think. This week’s Federal Open Market Committee (FOMC) meeting will no doubt be the … Continue reading
China is considering mechanisms such as a stock index circuit breaker system to temporarily shut down stock trading in order to prevent further “abnormal fluctuations”, China’s state-run Xinhua News Agency reported late on Sunday night. The introduction of a stock index circuit breaker system is being studied by China, where trading would be suspended for an unspecified … Continue reading
By Charles Hugh Smith The risk-off tide is rising, and sand castles of QE will only hold the tide back for a brief period of apparent calm. A funny thing happened on the way to permanently expanding global markets: unintended consequences. Borrowing cheap, abundant U.S. dollars seemed like a good idea when the dollar was declining, … Continue reading
China’s stock market bubble has “burst” and its economy is likely to face “tough conditions” over the next decade, Chinese authorities were reported to say during the Group of 20 nations (G20) meeting in the Turkish capital of Ankara over the weekend, the Nikkei Asian Review reports. Zhou Xiaochuan, the Governor of China’s Central Bank, the People’s Bank … Continue reading
Chinese stocks are set to see a further drop, despite a recent rout in equities, as government efforts to prop up its $5.1 trillion market have failed, according to world-renowned forecasters George Magnus and Tom DeMark. Magnus and DeMark both believe that the benchmark Shanghai Composite Index could fall around another 20 percent from their current level of 3,160 to around the 2,500 level. The Shanghai Composite … Continue reading
By George Magnus Financial instability in Asia and elsewhere has been attributed, partly, to China following the mishandling of a mini-devaluation of the yuan in early August and a failed attempt to prop up the flailing equity market. Yet the prevalent thinking now is that these developments reflect not only a structural slowdown in China’s economy … Continue reading
By Jeff Desjardins, Visual Capitalist Every day, the world consumes 93 million barrels of oil, which is worth $4.2 billion. Oil is one of the world’s most basic necessities. At least for now, all modern countries rely on oil and its derivatives as the backbone of their economies. However, the price of oil can have significant swings. … Continue reading
By Nile Bowie Malaysia’s prime minister, Najib Razak – a British-educated technocrat with a reputation for opulence – is at the center of an unprecedented scandal. A sovereign wealth fund established to develop lucrative industries and boost economic growth in Malaysia, the 1Malaysia Development Berhad (1MDB), has incurred more than $11 billion in debts and is … Continue reading
Regardless of election outcomes in October, Argentina’s next government will begin liberalizing its economy, potentially loosening restrictions on the repatriation of funds, reducing the enforcement of price controls and reducing subsidies. Despite slight changes to Argentina’s regulatory framework, the government will continue to bar some investment and businesses to stem capital flight and to maintain … Continue reading
China’s Central Bank, the People’s Bank of China (PBOC), will be forced to refrain from supporting the nation’s currency — the yuan — by early December and allow for the currency to decline, due to a strain on its foreign exchange reserves, according to Rabobank, Bloomberg reports. China will have to keep at least $2.7 trillion … Continue reading