Market Volatility In An Uncertain World

Market Volatility In An Uncertain World by Dan Steinbock, Difference Group Recent market volatility is neither entirely warranted nor unexpected. In China, it reflects a confluence of forces; but in the US and internationally, it is fueled by international worries. On Monday, January 4, China’s A-shares plunged by about 7%, whereas the renminbi (RMB) weakened to 6.52 relative to US dollar. The CSI 300 index, which tracks large-cap stocks in Shanghai and Shenzhen, suffered the largest single-day plunge in months. The fall was fueled by soft data (Caixin PMI’s slowdown to 48.2). However, the 0.4 decline was too small for…