Asian shares are still struggling on Wednesday as it begins to dawn on investors that the Chinese economy really is slowing. The implication for that is more deflation in commodities as they have accounted for nearly 50% of the purchases of commodities these past few years. As with respect to world total GDP. China has also accounted for nearly 50% of all growth making up for the dismal growth in Europe.
Investors are starting to fear that even fresh rate cuts in China will not be enough to stabilize its slowing economy and thus, stem the tide of the collapse in Chinese share prices. As we stated, the charts are different in Shanghai index warning that new lows are clearly on the horizon.
Continue reading “The Markets From Asia & the Prospects for the Dow”
