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The message in global stock markets – about China, the US and the whole world economy. We’ll dive in.
Black Monday, they called it in China. And it looked pretty bad in New York too, as the Dow skid 1000 points – biggest drop ever – in opening trading. So now what? For Tuesday, Wednesday, Thursday, Friday and beyond? Global stock markets have been in a panic. Buyers are looking for a way back in, but nobody wants to catch a falling knife. The soothers say fundamentals are good. Are they? And the US, now seen as maybe the island of stability. Really? This hour On Point: the message in the global markets, on China, the US, and the whole world economy.
-- Tom Ashbrook
Anusha Chari, economics professor at the University of North Carolina at Chapel Hill.
David Waddell, CEO and senior investment strategist for Waddell and Associates, a wealth management firm.
From Tom’s Reading List
The Wall Street Journal: Most Stock Markets Higher, Despite Another Steep Drop in Chinese Shares — "The global market rout showed signs of easing Tuesday, as U.S. stock futures and European stocks surged despite another sharp drop in Chinese stocks. Dow futures gained 584 points, or 3.7%, to 16293. S&P 500 futures were 3.9% higher. Changes in futures aren’t necessarily reflected in market moves after the opening bell. Treasurys slipped, as the fierce demand for haven assets faded."
Bloomberg Business: From Panic to Judgment Day, Investors Struggle to Describe Rout — "Panic. Judgment Day. Carnage. Meltdown. Fearful. Depressing. Psychologically draining. Wired. As global markets tumbled, investors, strategists and asset managers across the world struggled for words to describe the selloff that wiped $490 billion from emerging-market equities, dragged Saudi stocks into a bear market and pushed Russia’s ruble toward its lowest closing level on record."
Marketplace: Stock market drop is bad news... and good news — "The broad global stocks sell-off is reshuffling the deck of winners and losers. And while there are serious economic concerns that arise from the sell-off, there may also be at least some short term benefits. The sell-off hit commodities hard, including nickel, aluminum, and oil. Many experts say a slow-down in Asia, especially in China, means less need for raw materials."
This program aired on August 25, 2015.
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