ThinkForex - Analytics


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Markets the most turbulent in five years

Here is a market snapshot to more easily visualise the panic that has struck global markets and why we finally have the data to justify FED keeping rates on hold, possible for 'some time'. 

- Growth concerns from China and the recent devaluation of the Yuan has seen the markets slide, in trading conditions more akin to GFC market conditions
- Chinse stock markets are now trading beneath the level where Chinese Authorities pumped billions to help support the market, and ban short selling. 
- VIX has now risen by nearly 50% as panic sets in
- With WTI falling over 50% since the S&P500 all-time high in May it is very difficult, if not impossible, for FED to justify raising rates in September (or this year). 
- With commodities in secular bear trend and global stocks sliding it further reiterates fear of global growth fears, global recession and currency wars to be reignited in the 'race to the bottom'.
- If China is able to prevent their stock market from tumbling and produce better growth figures then it may help stop the bleeding of the markets. This would appear to be a big ask (and unlikely scenario). 








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