Jan 4, 2016. All about China…
–Well Happy New Year to the stock shorts as China’s shares plunged 7% on weak Caixin PMI of just 48.2. ESH down 30 (currently 2005.25) as of this writing, nearing the bottom of the range for the past 2.5 months.
–There was a good summary of China’s debt on Business Insider, link here:
http://www.businessinsider.com/asian-debt-and-gdp-stats-2015-10?r=UK&IR=T
$28 trillion in Chinese debt. Big numbers… This morning the yuan is at a new low 6.5344. One of the big events of 2015 was China’s surprise August devaluation. The currency is below that level and gaining steam, which is, of course pressuring neighbors. For example, over the weekend South Korea (the globe’s sixth largest exporter) released its export figures. Down again, for the 12th consecutive month.
–Speaking of bad neighbors, tensions are flaring between Saudi Arabia and Iran. Possible disruption to oil flow? Or does it mean the Saudis will pump flat out? Under/over on regime change in Syria versus Saudi Arabia?
–Today’s news includes ISM, expected 49.2 from 48.6.
–Buyer of 60k EDH6/M6/U6/Z6 9950c strip (cover) on Thursday for 3.0.
