Photo: Feng Li / Getty Images
The big news of yesterday was definitely the early release of the Federal Reserve’s bank stress tests.However, Art Cashin points to a few headlines that crossed the Chinese wires and rattled the Shanghai stock markets.
From this morning’s Cashin’s Comments:
China Speech And A Word Of Warning – Chinese Premier Wen Jiabao gave a speech yesterday and the Shanghai stock market got knocked for a loop (down 340 Dow equivalent points). The media feels that was due to his warning about housing. That may be but another part of the speech caught my eye.
Wen warned that major political change is needed lest the nation fall victim to another “cultural revolution”. Was this a slightly veiled reference to the recent actions and statements of that other Chinese leader, Party Leader Bo Xilai? We’ll try to do some research on that as its implications could be enormous. A power struggle in China is clearly not priced into world markets.
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