Posted on 02/02/2020 7:24:10 PM PST by BenLurkin
Chinese stocks tumbled as traders returned from an extended lunar new year holiday despite a promise from the central bank to pump liquidity into the financial system to help cushion the blow of a deadly coronavirus outbreak.
The CSI 300 index of major Shanghai- and Shenzhen-listed equities dropped as much as 9.1 per cent at the open on Monday with losses across the board. That puts the benchmark on track for its worst-day performance since August 2015.China had reported 17,205 confirmed cases of the coronavirus and 361 deaths as of the end of Sunday.
The fall in equity markets came even though the central bank announced on Sunday it would provide Rmb1.2tn ($173bn) in additional liquidity to money markets in the largest one-day open market operation since 2004. That was on top of 30 measures across five ministries and regulators meant to provide financial support to industries seriously affected by the outbreak.
(Excerpt) Read more at ft.com ...
And the Dow futures are up 100+.
Go figure.
China and US are NOT twins. What happens in China, stays in China...j/k..
The senate 51-49 vote could be a factor.
“And the Dow futures are up 100+...Go figure.
Denial (by the traders)...but they’ll start catching on as companies here start to announce supply disruptions.
I’m speculating most of Asia is moving their money to the US stock markets - it won’t last
I was thinking that as well. But when the margin calls come, there will be hell to pay. I don’t think their 150 billion liquidity injection is going to cut it.
The situation in China is going to become very bad very soon.
They have 33 924 proven and suspect cases and are evaluating another 137 594. All 33 provinces are reporting cases.
The speed of spread is quite remarkable. I believe US policy, IF it is carried out, will prevent this type of spread here.
But if growth rates in China persist for even another week, and the leadership flees, the regime may well collapse.
You’d think the markets already would have factored that in.
I sold a week ago Friday - my colleagues were focused on the Super Bowl and didn’t believe the virus was bad. Even on stock boards, everyone kept saying 6,000 Americans died from the flu, yada yada. ... maybe they’ll wake up now.
Nope...normalcy bias...but they’ll catch up.
January 26, 2020 - 07:00 AM EST
Government health agency official: Coronavirus 'isn't something the American public need to worry about'
Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases (NIAID), said Sunday the American public shouldn’t worry about the coronavirus outbreak in China.
“It’s a very, very low risk to the United States,” Fauci said during an interview with radio show host John Catsimatidis...
With a 10% limit on the fall of any individual stock, an 8+% fall , in aggregate, is very significant.
The old one two bunch. Trump had them reeling from tariffs and the virus will knock out their economy. Couldn’t happen to a worse enemy. Hope they implode. We don’t need the leeches
This isn't going to cause China to collapse. In the last 2 weeks there have been about 360 deaths in China as a result of the coronavirus. 700 people die every day in China just from traffic accidents.
Well most people I know thought there would be thousands of cases around the world outside of China by now with many dead.
I may happen.
But it didn’t yet.
Though it was down 500 on Friday so did they expect THAT MANY more to die in 2 days? :)
The market is nuts.
“What happens in China, stays in China”
until the panic and chaos in china affects the $2.5 TRILLION of their annual world exports of parts, PCs, chemicals, medications, electronics and electronics parts,auto parts, hardware, consumer goods, and about a bazillion other items in the supply chain that U.S. and world industries are completely dependent upon ...
Bingo. And by the way the Chinese injections mean among other things that the Chinese banks are taking over foreign investments using this situation and they do it on the cheap.
“” “” until the panic and chaos in china affects the $2.5 TRILLION of their annual world exports of parts, PCs, chemicals, medications, electronics and electronics parts,auto parts, hardware, consumer goods, and about a bazillion other items in the supply chain that U.S. and world industries are completely dependent upon ..”” “
That is what I was saying for quite some time. People aren’t showing up at work in China en-masse would affect the rest of the world very shortly.
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