Wednesday, May 30, 2007
China's stockmarket begins to cool
The Chinese market dropped 6.8% today; not much compared to its rise this year, but it's seen as the start of a necessary correction - Mark Mobius of Templeton regards a potential 30% loss as healthy! However, The Daily FX think it may also trigger a similar bearishness on the Dow, and if it does, this will impact on the carry trade. It has already caused a drop on gold futures today. Everyone seems a bit jumpy.