Market Depth

When Markets De-Risk, But Not Decouple (from China)


Listen Later

A lousy Manufacturing PMI reading out of China pulled the Hang Seng index officially into bear market territory, sent the yuan crashing through 7.10, and seemed to have set off a broader, risk-off market move that reverberated across asset classes globally. 

But, did yet another piece of weak economic data from China really spook global markets - particularly the previously China-resilient DM equity indices such as Japan? After all, Asia equities ex-China have been leading the world higher for several weeks, ignoring one disappointing data release out of China after another. What (else) actually happened to stop the market momentum today? 

Weston Nakamura points to technical market mechanics that are also behind the selling activity - namely, month-end portfolio rebalancing flows and activity on outperforming Japan and A.I. related equities as a primary culprit for the market reversal. Weston notes that without recognizing such market mechanics, we may be mistakenly attributing market behavior to China, when in reality, equity market price action may have very little to do with a weak data print out of China all along.

--

Follow Market Depth On Spotify: https://spoti.fi/3mVTs9U

Follow Market Depth On Apple Podcasts: https://apple.co/40dA2vm

Follow Weston: https://twitter.com/acrossthespread

Follow Blockworks: https://twitter.com/Blockworks_ 

Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/

--

Disclaimer: Nothing discussed on Market Depth should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

...more
View all episodesView all episodes
Download on the App Store

Market DepthBy Blockworks

  • 4.8
  • 4.8
  • 4.8
  • 4.8
  • 4.8

4.8

22 ratings


More shows like Market Depth

View all
What Grinds My Gears by Blockworks

What Grinds My Gears

113 Listeners

Empire by Blockworks

Empire

164 Listeners

Supply Shock by Blockworks

Supply Shock

115 Listeners

Forward Guidance by Blockworks

Forward Guidance

274 Listeners

Bell Curve by Blockworks

Bell Curve

36 Listeners

0xResearch by Blockworks

0xResearch

17 Listeners

Lightspeed by Blockworks

Lightspeed

25 Listeners

Expansion by Blockworks

Expansion

2 Listeners