(as of 7:00 AM PST)
Turmoil persists in global markets, a spillover from a crushing day on China markets. Chinese markets closed a mere 45 minutes into the session overnight when they plunged 7%. There are reports today that China will remove market restrictions immediately and let the forces of supply and demand regulate market levels so it could be interesting this evening when China markets reopen. Europe markets followed Asia down and US markets also fell heavily to start this morning's session. Economic data has certainly taken a backseat in this crisis driven market, but on the plus side, continuing claims for unemployment continued to go down, indicating that our economic recovery is still somewhat intact. Oil continues to drop, approaching $33 per barrel, as OPEC and most other oil producers have dropped all production controls in an attempt to increase market share. The world is awash with excess oil and no place to sell it as demand dwindles. Gold is the sole beneficiary of this market rout, continuing its rally that is tied to the demand for a safe haven asset. Expect continued volatility until China can find a bottom and the dust settles enough to evaluate other economic factors.
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