The US stock market mimicked the Chinese market’s fall, though without having to close.
“Standard & Poor’s 500 and Dow Jones Industrial Average fell by 6% and 6.2%, respectively, in the biggest ever fall for the first five days of January” – Guardian
The hypothesis that the world is somewhat insulated from the drop in China’s stock market was negated by drops in almost all of the world’s markets. Until recently, China’s influence was secondary; but now, movements in China’s economy are primary and influence other markets, commodities, and supplier and consumer relationships around the world. The bad news of China’s drop was more powerful than the good news within the US jobs report. If growth in the US economy was stronger news, then at least the US market would have risen. Instead, China’s news dominates, and therefore proves China’s dominance – for now.
(Click on the photo for the link.)
“US Stocks Suffer Their Worst First Week” – Guardian
Pretending Not To Panic 