By Chris Becker
The continued devaluation agenda for the Chinese economy is wreaking havoc among markets across the world again, with interest rate expectations from the Fed under threat – down to 40% from over 56% earlier in the week – sending the USD down against everything. So we’ve had a wild ride in currencies, especially Asian along with Yen and Aussie, while European stocks were slammed as their failing export only model of growth evaporates in the face of a cheaper Yuan. US stocks rebounded on rumors this action will stall any rate rises from the Fed, with the buy the dip crowd rescuing the S&P500 and Dow. Gold is finding a renewed bid and closed above $1120USD per ounce.
Amid the chaos, the Germans continue to hold out on the Greek bailout, flat out refusing any principal reduction even as they amid this third bailout won’t help.