Today's been a pretty shocking day on Asian markets. The Shanghai Composite was down 8.7% at the last reading, with the market giving back all its gains on the year. It's been broader though with all the regional indices off at least 2.5%. Not pleasant viewing at the moment.
Yes, looking at the market indices and futures from around the world, using the Android Bloomberg Business app, and watching Bloomberg's Countdown, live from London, now. Looks ugly, and unfortunately some long-term investors will be scared out of staying the course. It actually is a good time to build a shopping list and figure out when to pull the buy trigger.
This is going to help the US stock market in the long term. Investors will not have confidence in China if the gov´t there is making radical, and seemingly random adjustments like they did last week. I mean look at our Fed right now, they have been waffling for months on a .25 jump in interest rates and debating it openly at each meeting. China, they just wake up one day and totally develue their currency with no pre-announcement or even justification. It will be hard for people to put money back in that market.
After the crash of China's stock exchange a few weeks back, now it is India's turn for a crash of their stocks. Those 2 largest countries in terms of stock market are going down on their knees, is this an international trend? With the crash, the value of the Yuan (Renminbi) has gone down, sending a warning to the international community. The Philippine peso which stood at 43 per dollar for a long time is now more than 46 per dollar and may reach a high of 47 in the exchange rate.
