Money Sense

[cc]

OK - I nailed it - It was Rohammad  - 3rd post from bottom of page 8 - he quoted from one thread and then posted it in Money Sense thread



Prolly had to rush to prayer and messed up



ac_smile

[Anonymous]

You are correct, but that's not what I'm saying



Somebody cross posted and any quotes now read Re: Canada Sent More "Participants" To Paris Climate Talks Than Australia, the U.K. And U.S. Together

Oh I see what you mean cc la femme.

[cc]

Yes - and i cannot find the Re: Canada Sent More "Participants" To Paris Climate Talks Than Australia, the U.K. And U.S. Together" thread anywhere on main page - I think that is where it used to be?

[Anonymous]

Wait Wait !! - It May be a lot worse apart from China



http://www.foxbusiness.com/markets/2016/01/04/stocks-facing-bigger-issue-than-chinese-slow-down/?intcmp=bigtopmarketfeaturesside">FBN - Stocks Facing Bigger Issue Than Chinese Slowdown



Monday's sharp stock selloff, an alarming opening to the 2016 trading season, is being blamed on renewed concerns out of China that the world's second largest economy is rapidly losing steam.



That's makes sense, but the downturn may be a sign of a larger issue for U.S. stock markets: investors are coming around to the reality that years of stock market gains fueled largely by the Federal Reserve's easy money policies are finally coming to an end.



In other words, the party is over and it's time to sober up. How appropriate then that this message is resonating so clearly on the first trading day after the New Year.





For me, as the TSX came down and US stocks continued to climb despite a very soft US economy underbelly, clearly "something"  did not fit south of the border.



This "could be the reconning for and the end of what many see as  HEAVILY OVERPRICED US Stocks" ???



Some are saying tomorrow depends on openings @ the 2 major Asian markets + how the day goes from there.



seoulbro - Your take on it all?

It was the worst start of the year for the Dow in eight years. China has been responsible for anywhere from 1/4 - 1/3 of global growth since the onset of the financial meltdown in 2008. The global driver of stocks is changing. China is now transitioning from high growth based on infrastructure spending and manufacturing to one centred on consumer spending. It is a natural progression, but it has impacts for global market demand. It also exposes the weakness in other markets. It is going to be a lukewarm year.

[cc]

Thanks guy. How about possible overpriced US market?



Just looked - Tues business - 1 hour to closing - Shanghai Composite down only 1.5%

Hang Seng closed @ down 0.85%



MarketWatch - China's central bank injected 130 billion yuan ($19.9 billion) in short-term funds into the country's financial system, according to a statement, in an effort to help calm jittery investors after Monday's sharp stock selloff.



Some are predicting that China's rigged markets could go badly fast - "If investors suspect China is no longer ready or able to step in as a buyer, you can expect Chinese equities to fall fast,"



The black start to January trading had its roots in the controversial government intervention last summer to rescue stocks from a rout, which wiped over $4 trillion off share values and sent shock waves around global markets.



This appeared to have paid off after a subsequent partial market rebound, yet it always left a worrying overhang both from resulting heavy state ownership and the imposition of a six-month ban on major shareholders (over 5%) from selling positions.



With that six-month moratorium ending this coming Friday, investors were spooked that there could be an avalanche of pent-up selling.



And this time around will the government still be around to come in as buyer of the last resort?

[Anonymous]

Thanks guy. How about possible overpriced US market?



Just looked - Tues business - 1 hour to closing - Shanghai Composite down only 1.5%

Hang Seng closed @ down 0.85%



MarketWatch - China's central bank injected 130 billion yuan ($19.9 billion) in short-term funds into the country's financial system, according to a statement, in an effort to help calm jittery investors after Monday's sharp stock selloff.



Some are predicting that China's rigged markets could go badly fast - "If investors suspect China is no longer ready or able to step in as a buyer, you can expect Chinese equities to fall fast,"



The black start to January trading had its roots in the controversial government intervention last summer to rescue stocks from a rout, which wiped over $4 trillion off share values and sent shock waves around global markets.



This appeared to have paid off after a subsequent partial market rebound, yet it always left a worrying overhang both from resulting heavy state ownership and the imposition of a six-month ban on major shareholders (over 5%) from selling positions.



With that six-month moratorium ending this coming Friday, investors were spooked that there could be an avalanche of pent-up selling.



And this time around will the government still be around to come in as buyer of the last resort?

That's not very encouraging cc la femme.

[Anonymous]

The Chinese government has put the peg to the American dollar slightly lower..



I saw that it's difficult to gauge China's stock market because there are many state owned enterprises that are manipulated by cadres..



It's not like other stock exchanges.

[cc]

Yes. And further, every time the market seeks its true level the gov't pours billions more into it to rescue it ... which is really just kicking the can down the road, not addressing the problem  underneath it all



I'm not sure if the "sell" deadline is at the beginning of or the end of the day Friday - will be interesting to follow if the deadline is not extended. Effect could be immediate or a bit later and slowly. We will know soon



EDIT: Current - Oh Oh!! Shanghai is down another -7.32% as of this moment, 3 hrs till closing  ... unless they stop trading like they did a few days ago at -7%+



Here's what I use to get a look at what "might" happen any next day here

http://money.cnn.com/data/world_markets/americas/">http://money.cnn.com/data/world_markets/americas/

[Anonymous]

Yes. And further, every time the market seeks its true level the gov't pours billions more into it to rescue it ... which is really just kicking the can down the road, not addressing the problem  underneath it all



I'm not sure if the "sell" deadline is at the beginning of or the end of the day Friday - will be interesting to follow if the deadline is not extended. Effect could be immediate or a bit later and slowly. We will know soon



EDIT: Current - Oh Oh!! Shanghai is down another -7.32% as of this moment, 3 hrs till closing  ... unless they stop trading like they did a few days ago at -7%+



Here's what I use to get a look at what "might" happen any next day here

http://money.cnn.com/data/world_markets/americas/">http://money.cnn.com/data/world_markets/americas/

Oh no cc la femme.

[cc]

Strange - still -7.32% with 2 1/2 hrs till close



It isn't my cache as the time till closing is changing each minute



Maybe they did shut down trading again?? I'll see what i can find

[cc]

Strange - still -7.32% with 2 1/2 hrs till close



It isn't my cache as the time till closing is changing each minute



Maybe they did shut down trading again?? I'll see what i can find -



EDIT: OK, It is closed and it auto closes when it hits -7% for the day



China's "circuit breakers" - BBC

The measures were announced in December after a summer of dramatic market losses - used for the first time time on Monday and again on Thursday

They automatically stop trading in stock markets that drop or appreciate too sharply - a 15 minute break if the CSI 300 Index moves 5% from the market's previous close, or a whole-day halt if it moves 7% or more

[Anonymous]

China is struggling to find a new growth model and its currency devaluation is transferring problems to the rest of the world. Almost $2.5 trillion was wiped from the value of global equities this year through Wednesday.



Measures of volatility are surging this year. The Chicago Board Options Exchange Volatility Index, known as the fear gauge or the VIX, is up 13 percent. The Nikkei Stock Average Volatility Index, which measures the cost of protection on Japanese shares, has climbed 43 percent in 2016 and a Merrill Lynch index of anticipated price swings in Treasury bonds rose 5.7 percent.

[Anonymous]

There are so many things that could go very wrong for Canada this year. Here is a list of some of them.



1) China crash

2) Emerging-market bankruptcy

Potential disaster for the developing world if the U.S. began raising rates.

3) Oil to $20

4) Markets melt down

If oil and commodities continue their plunge in 2016, low prices could eventually cause serious damage to oil producers and mining companies that can't be solved by layoffs.

There are distinct worries that the troubles of resource companies could be passed on to banks. Junk bonds and ETF markets are also a source of concern.

5) Canadian property crash

6) Sputtering American growth

[Anonymous]

I was watching an investment advisor who said he feels the Canadian dollar is now undervalued in comparison to the American dollar..



I know it feels like we have taken a pay cut when we buy groceries..



An increase in the value of our dollar would help to stretch our food budget.

[Anonymous]

Chinese growth for the last quarter came in at a better than expected 6.8%. The more realistic number is closer to 6.5%, but we'll gladly take it. The other good news it that by the end of the year Chinese demand for crude is expected to reach an all time high.



Now the bad news. A private survey showed manufacturing sentiment as the worst in six years. Beijing clearly doesn't have the same control over its economy as it has demonstrated in past years, such as during the financial crisis. Some of the tools China has traditionally relied on to support growth are losing effectiveness as their repeated use runs up against structural inefficiencies and a larger economy. As some factories close and construction projects stand idle, the flow of migrant workers to cities is starting to reverse.



China's central bank has pumped $15.18 billion of funds into the market via a medium-term lending facility Friday in a bid to keep ample liquidity in the nation's banking system. The People's Bank of China said it offered the funds to nine financial institutions at an interest rate of 3.25%. The lending will have a six-month maturity and it aims to guide banks to step up lending to the nation's small businesses and agricultural sector.