This week, it was impossible to see the amount of red ink coming from U.S. equities and not feel like there are big problems around the renewed potential of tariffs on China and the resulting increase in trade tensions.
| What are Markets Really Saying About China? | | This week, it was impossible to see the amount of red ink coming from U.S. equities and not feel like there are big problems around the renewed potential of tariffs on China and the resulting increase in trade tensions. | | U.S. equities fell about 3 percent in the first half of the week while Chinese stock indices fell 5 to 7 percent. Even so, markets are not unanimous in their reaction to these news developments. | | One notable exception is the Chinese yuan, which is off by less than 1 percent. Granted, the currency is heavily controlled by the government, but some currency analysis shows that the yuan should be weaker by more than this on the news. On this front, China is trying to maintain currency stability and not roil markets. | | | | |
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