Unless you’ve been living under a rock since January 4th, you’ll know that the start of 2016 for the global markets has been beyond horrific.
Virtually every single major market is down at least some way, and fear is starting to spread across the market sector.
We’ve even had our first majorly apocalyptic call of the year, with Societe Generale’s uber-bearish economist Albert Edwards predicting that the US stock market is going to crash by 75%.
Deutsche Bank analysts Marcos Arana and Matthew Luzzetti just dropped the “House View: Market Outlook 2016” note, a 50-slide monster absolutely filled with brilliant charts and data about what the bank reckons will happen this year. Contained within the report is also an excellent summary of just how horrible the markets are so far in 2016.
Check it out below.
Poor trade data coming out of China, combined with the dollar's continuing bull run, pushed the yuan, China's currency, far into the red.
Then people got scared that the widening gap between offshore yuan and onshore yuan prices pointed to a further drop in the currency's strength.
The yuan's weakness helped crush Chinese stocks, which triggered a 'circuit breaker' in the markets several times. Eventually, the Chinese government gave up on circuit breaker, with people suggesting that it was actually making things worse.
The Chinese stock market rout spooked equity investors in the rest of the world, with exporter-heavy indices like the DAX in Germany suffering particularly badly.
Volatility, basically how much markets are likely to move, shot up, more than doubling since November last year.
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