This is not just a Chinese problem. It’s a global problem, and it’s getting worse across the pond in the eurozone. Germany, the biggest economy in the 19-member block, had industrial production pulling back the most in 23 months. Like China, exports were weak. Italy, the block’s third biggest economy, cut its forecast for this quarter, and it also has a major election this year in which, like Britain, they will be debating whether to leave the European Union. As of today, the vote is too close to call. Meanwhile, since Brexit, things have begun to slow down in Britain, and its general economy looks to be contracting in the next quarter.
One year of volatility ignored. Check.
UK stocks with Pound (both are $USD-based ETFs)
UK Pound with Chinese Yuan aka. "Hong Kong"
S&P gaps with UK stocks:
The safety trade is on today...
...if that's what you want to call it...
