12
votes
Chinese markets plummet beyond 8% amid virus fears on first trading day after Lunar New Year holiday
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- Title
- Asia stocks set to fall as investors await reopening of Chinese markets amid virus outbreak
- Authors
- Eustance Huang
- Published
- Feb 2 2020
- Word count
- 358 words
If the next recession is caused by a virus I'm gonna be surprised and somewhat underwhelmed. Is that likely?
There's never been a recession with a single cause, it's always a case of too many straws on the camel. For example, right now we have the US having a series of political and foreign conflict messes that are causing severe market uncertainty, Britain with Brexit and whatever follow-on that has in Europe is doing the same, France, Hong Kong, parts of South America and the Middle East all have some pretty major long term protests happening, Australia has been burned to a crisp, New Zealand had an island explode, South Africa flooded, Russia is currently converting basically their entire political structure to keep Putin as god-emperor...
So you can happily tell anyone who says the virus caused a recession that it was probably more complex than that while you wait for your boiled boot soup to be ready :-)
This headline is overly alarmist.
Chinese stock exchanges have been closed for weeks.
Chinese stocks were trading on American exchanges. You can see the ETF FXI go down 8% over last few weeks.
So it was expected that China would open lower.
An 8% pull back is nothing. US markets barely reacted.
I’m still bearish from the yield curve inversion.