I usually watch the Asian markets most nights to get a gist of what’s going on in the Eastern Hemisphere. Tonight was to be a special event, as the whole world seem to sell off on China’s announcement of 1/4% rate hike after their market closed. This morning, during our selloff, the FXI was at a 3% discount at the lows and closed 2% lower than its closing value when China/Hong Kong closed yesterday. So what happens?
China gaps down 1% lower on the open, trades down another 1% in the first 10 minutes. Then a huge surge in volume accompanies a 1% rally for two minutes. And now, after the first hour the SSEC is down only 0.15%. Hong Kong opened 2% lower and at this time is still 1.5% lower. It will be interesting to see how they close.
Footnote: Shanghai’s SEC closed at a new high for the bull market up 1.66%. That’s a real stock market!