Global Stocks Hit By China Slowdown Fear

Concerns about the Chinese economy hit global stocks Wednesday and could make for a weak start on U.S. markets.
U.S. stock futures were modestly lower ahead of a quiet day in terms of U.S. economic and corporate news.

Big swings in some commodities reflected the nervousness about the pace of growth in the world’s second biggest economy. Gold prices pushed higher while copper prices fell to their lowest level in at least a year.
“It was the accumulation of negative China-related headlines or it was the sharp drop in copper in both London and Shanghai that spooked markets,” wrote Deutsche Bank analyst Jim Reid in a market report.
China concerns have been edging to the forefront of investors’ minds since February data showed exports tumbled 18% compared to last year.
That followed news that the country had experienced its first-ever corporate debt default. Some analysts believe more defaults could be in the pipeline.
In recent weeks, the Chinese central bank has also loosened its grip on the currency, allowing it to fluctuate more than usual, shaking confidence in what has been seen as a safe one-way bet.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza