Authored by Steven Vannelli via Knowledge Leaders Capital blog, Last night the China Shanghai CSI 300 index fell a bit more than 1.6%, taking out February lows and setting a new YTD low for the index. This is important since the global equity markets have a very high correlation to Chinese stocks. In the chart below, I compare our KLSU Americas Index (top 85% of developed market cap, USD) to the China CSI 300 Index (in USD). With a correlation in excess of 80%, this suggests that Chinese stocks explain a little more than two-thirds of the movement in developed Americas stocks. https://www.zerohedge.com/news/2018-04-17/chinese-stocks-slump-2018-lows-latam-markets-soar
Down $1 Trillion, World’s Worst Stocks Near Make-or-Break Level In a Chinese stock market infatuated with round numbers, 3,000 has emerged as the latest fixation for investors trying to gauge the government’s commitment to ending a nearly $1 trillion selloff. https://www.bloomberg.com/news/arti...world-s-worst-stocks-near-make-or-break-level