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Honored Advisor

China, mess with bull get the horns!

Was it worth not buying US beans and not making a deal?

 

https://www.msn.com/en-us/money/savingandinvesting/that-dollar43-trillion-wipeout-in-asian-stocks-is...

 

 

It was looking like a week of wound-licking for Asian stocks. Then crude oil entered a bear market and alarm bells rang on China’s slowdown as tech stocks plunged.

 

Just like that, the region’s equity benchmark erased weekly gains and posted its sixth slide in seven weeks. The MSCI Asia Pacific Index slumped 1.2 percent Friday, worsening the wipeout that already erased $4.3 trillion of market value this year.

 

 

It’s anyone’s guess how regional stock markets will do on Monday but it isn’t looking good right now: the S&P 500 Index dropped 0.9 percent Friday and futures contracts on the Nikkei 225 fell.

Read more: Trying to Salvage a Ruined Year in Stocks With Seven Weeks to Go

Of note: energy companies were, by far, the biggest decliners, followed by tech shares as Tencent Holdings sank almost 5 percent. Watch for its quarterly results next week -- analysts expect the giant will report its slowest revenue increase in more than three years.

One thing that might be worth keeping an eye on is data around China’s consumption -- car sales fell for a fifth month and and Ctrip.com International joined the likes of Baidu and Alibaba Group Holding in being unable to avoid the economic slowdown.

Also throwing cold water on the recovery is the U.S. dollar, which resumed its appreciation as the Federal Reserve signaled it’s still ready to increase rates in December. The strong greenback has been a key concern for investors in the region, as it’s weakened local currencies and triggered massive outflows from emerging-market assets.

There are also some country-specific news to keep in mind:

  • China’s factory inflation slowed for a fourth month while consumer prices steadied amid sluggish demand.
  • The nation is also aiming to boost large banks’ loans to private companies to at least one-third of new corporate lending, said Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission.
  • Australia’s central bank said it expects stronger growth and hiring to help lift inflation, but warned of risks to the global outlook from a worsening trade war and weaker China.
  • Malaysia’s industrial production rose 2.3 percent in September from a year earlier, matching projections, while data on Indonesia’s current-account balance is due later.

Hong Kong and Chinese shares tanked more than 1 percent on Friday, with the Hang Seng China Enterprises Index showing a familiar look that doesn’t inspire any good -- just see this chart by Mark Cranfield, a Bloomberg M-Live strategist:

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10 Replies
Advisor

Re: Kingdoms come, Kingdoms go

It's bout that simple.

the USA equities are sure toppy too.

 

china is the least of anyone's problems.  MO.

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Honored Advisor

Re: Kingdoms come, Kingdoms go

On USFR they were talking China and milk.   And China isn`t having it so good that they might not be in the milk market even if we were buddy buddy again.  And another thing, the Chinese consumers are saying " we lost face and don`t want anything to do with American products at any price!".  Those reports should be taken with the same grain of salt as a "Trump approval rating conducted in the middle of a Antifa riot".   

 

The Rolls Royce company has caused me to "lose face" because of that will never buy a Rolls Royce car!   ….yeah that and I don`t have $800,000 laying around to buy a car with   Smiley Happy

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Advisor

Re: China, mess with bull get the horns!

 
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Senior Contributor

Re: China, mess with bull get the horns!

Posted 6.5 GDP for third quarter almost double the US.
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Honored Advisor

Re: China, mess with bull get the horns!

Maybe the US needs a Chinese economist to figure our GDP?   Smiley Happy  Here`s the last Chinese economist to predict a recession in China  Smiley Happy

 

See the source image

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Honored Advisor

Re: China, mess with bull get the horns!

We are getting a feel for how the fed wants to trim economic enthusiasm.-- or haven't got a clue what their doing.

Can we go back to an economy that is not government controlled.

 

Finally world governments are finding ways to tax the new tech economy....that will hurt china also.

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Veteran Advisor

Re: China, mess with bull get the horns!

Won't   Raise  Taxes   &   Peace     -  the  two  most  irreverent, disparaging   statements  in  my  lifetime  -    -    -

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Honored Advisor

Re: China, mess with bull get the horns!

a half million invested in the stock market is an asset, the income generation of that investment is not going to see taxation for decades or a generation.

 

A half million invested on main street or in a small business in the local economy is another asset, the income generated will be taxed immediately --income tax, property tax, insurance, security,,,,, all costs that drive investment to  the stock market investment in companies that employee chinese employees, to sell products back into the US economy and fund US candidates for congress to protect their advantage tax wise and control the regulations limiting the use an control  of technology in the US.

 

Congress won't address this issue........... and I do not support or trust congress to make decisions that are good for their voters or their country until they are willing to address this issue.  Globalization may be inevitable but the US looses if we continue to let multinational businesses to control our election process and write our laws.

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Veteran Advisor

Re: China, mess with bull get the horns!

GlobaliZation     -  

 

1 -  Political    -  the  amount  of  political  co-operation existing between different countries  -  ? 

 

2  -  Social  -  easy   $$$$  -

 

3 -  Economical   -    a  definite,   goulash'$   on  K  street  -  a  given  -    -    -

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