RE: China27 Jun 2018 13:47
My understanding is that the current situation is more to do with the strength of the dollar. Simple and as stupid as that, The trdae war fisaco isn;t helping and nor have the decsion with regards to poilcies by both Draghi and Powell as of recently
China are devaluing the yuan in a bid to fight back against the US who are/will suffer from this.
https://www.thestreet.com/markets/trump-trade-war-revives-fears-of-chinese-currency-plunge-14634564
This is already manifesting itself in the indice drops as of the past week and droppng Treasury Bond yields.
Trump simply needs to devalue the dollar else......
2015 saw a similar event occurring.....and it may be on its way again if Trump/Powell don't intervene/back off...
''In August 2015, China made a sudden change to its exchange-rate-management policy, sending U.S. stocks down 6.3%. And in January 2016, as China showed signs of slowing economic growth and troubles managing a burgeoning debt load, investor fears of a further devaluation led to a 5.1% plunge in the U.S. stock index.''
Essentially a currency war has now begun. It's not just abt Trade Wars any longer.... that is to say Beijing are now evening the odds in their 'trade skirmish between the world’s two largest economies'