Chinese Stocks Slump To 2018 Lows As LatAm Markets Soar

Discussion in 'Stocks' started by Error Correction Funder, Apr 18, 2018.

  1. 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.
  2. I thought China was going to crush us in this trade war? :)