While the Shanghai index is up 0.5% overnight to 2110s area something is definitely amiss in China. While the general slowdown there is an obvious concern, it seems the expectations for further stimulus are not being met and hence we have seen tremendous weakness. While European indexes have rebounded sharply on Draghi's pledge to be Bernanke, and the U.S. market has enjoyed its status as best house in a horrid neighborhood, China does not seem to be playing along. In the past China has been a good leading indicator for the rest of world markets but it has seemingly been ignored for now as the global central banker put dominates the action.
Definitely a head scratcher to see this index at yearly lows while the rest of the world whistles its way to work.
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