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If you’re wondering why this morning’s vainglorious strength on the ASX is rapidly turning to mush, look no further than the Shanghai Composite, which has ruptured its major mutli-year low and resumed a downwards path that is truly becoming epic in its scope. Here’s the chart, down 3% or so today:
‘ And the long term:
To complete the picture, the ASX just turned negative for the year as well. It’s getting more and more difficult to see anything other than sharply slowing Chinese growth ahead.
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.