Skip to comments.Stock futures drop sharply as China tumbles
Posted on 06/24/2013 4:00:50 AM PDT by John W
MADRID (MarketWatch) U.S. stock futures fell sharply on Monday, tracking global markets lower, as Chinese stocks plunged over 5% on increasing fears surrounding a liquidity crunch. Goldman Sachs cut its growth forecasts for China, along with its outlook for gold prices.
The tone was downbeat for global markets, with Europe stocks sharply lower, dragged on by Asia losses and persistent worries about when the Federal Reserve will start paring back its bond-buying program.
But it was China fears that were hitting sentiment across the board.
(Excerpt) Read more at marketwatch.com ...
Correct me if I am wrong. A 5% drop is considered pretty bad. It is also implied that there is more trouble to come.
Compared to what is sometimes touted as “big” drops in the Obama era, I would say so.
Just wait for the market reaction when Barry announces that energy prices will “necessarily skyrocket” after his Tuesday presser on climate change. Only the best and brightest...
Yes, not sure what time of day that’s scheduled for but can’t imagine it receiving a warm welcome anywhere other than among the environmental nuttery factions.
Update: The Shanghai Composite dropped an incredible 5.3% today as high interbank rates made investors fear a liquidity crunch in the world’s second-largest economy. Goldman Sachs also lowered its growth expectations for China from 7.8% to 7.4% in 2013 and from 8.4% to 7.7% in 2014. China has been one of the few economies growing more than a nominal amount over the past five years, so slower growth would have a negative impact on economies worldwide.
China now is slowing down.
Bump for later
This is an indication of the great second phase of recovery which will soon be announced. Only those who are pure in spirit will be able to see this recovery so if you don’t happen to notice a recovery don’t tell anyone or they will know you have an impure spirit.
As Americans become poorer and more 3rd world by the day, we won’t have money to buy all the plastic junk, electronic toys and gadgets, decorations, clothes, etc. from China. We’ll be struggling to buy groceries and pay our light bills and health insurance. Any extra money will go towards guns, ammo and seeds.
Sorry China, we can’t prop up your economy any more. We have our own “5 year planning” board deciding our fates.
Sorry to burst your bubble, but they are not exactly dependent upon the US for the economic growth. Firstly, the Chinese government works hard to limit inflation and growth every year. Secondly, only 20% of their exports go to the US (note, not even 20% of their production, just 20% of what they ship out). If EVERY export to the US ended instantaneously, they'd have some pain... but they wouldn't crash. We need them more than they need us. Sad, but true.
(Germany, Italy, and the Netherlands combine for about 10% of China's exports... about half of what we buy from China... and those 3 nations total 120 million people, far less than half of our 330 million. Per capita, we are not nearly as important to China as Europe is. Singapore has 2% of China's exports, with only 5 million citizens... 1/10 our business with only 1/60 our population.)
How Goldman Sachs on one hand downgrade China, and on the other hand be a cheerleader for the US markets? If gold is going down it is a bad bad sign that some serious deflation is coming down the pipe.