China's Market Selloff Spells More Than Just Trouble For US Stocks

Yesterday we pointed out the growing fixation with with the correlation between Chinese equities and US equities. The question on everyone’s mind is: Does the decline in the Shanghai Composite foretell a similar decline here?

Our conclusion is that you needed more data to answer the question.

We still do, but while we’re looking at the question, here’s another angle. Chinese stocks have also acted as a leading indicator for commodities as this David Rosenberg chart (via PragCap) shows nicely.

chart

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