by Chris Becker
Its the worst start to a New Year trading session ever for American and European stocks. Both centers saw stocks slump 2% following the circuit broken 7% plus drops in Chinese stocks that shook around the world. Rush to safety in bonds was mixed however, with Euro bonds sold off as the emerging markets capital crisis rolls on.The volatility was really about currencies with the USD getting pushed and shoved all over the place. Euro spiked, Yen broadens its Asian safety net, while the Aussie dollar flirted with 70 cents and was crushed on the crosses. Oil again took a tumble, although managed a quick short covering rally in the wee hours of the morning.
A lot of money is being made and lost on markets right now and this feels exactly like 2007/2008….