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It'll be interesting to see how North American markets will respond tomorrow. Is there any indication that these wild swings are caused on purpose? I mean they

It'll be interesting to see how North American markets will respond tomorrow. Is there any indication that these wild swings are caused on purpose? I mean they did occur after the Chinese devalued their currency again, so did they not know that a downturn in the market was going to follow? Are there any currencies maintaining their relationship with the US dollar? It seems like the USD is singularly levitating above all other currencies.

hkmurakami 11y ago
Major US indices futures are down about 1% and have been in this range for the last couple of hours. Considering Shanghai is closed, it'd be reasonable to expect markets to trade around this range tomorrow barring any significant additional developments.
kasey_junk 11y ago
> Are there any currencies maintaining their relationship with the US dollar? Over what time period? The Pound/Dollar pair is pretty stable historically. With the exception of recent intentional corrections the USD/CHF pair is usually stable (though I'm glad I was out of trading on that one particular day). Lots of currencies have the problem that they act as proxies for the natural resources of the country in question. So they vary with high correlation with commodities prices (see CAD/AUD). In many ways the USD is the opposite of that, so it's not that surprising that lots of currencies fluctuate wildly around USD.
netheril96 11y ago
> Is there any indication that these wild swings are caused on purpose? I mean they did occur after the Chinese devalued their currency again, so did they not know that a downturn in the market was going to follow? I am a Chinese and I heard two theories from my friends: 1. Today's swing is a response to North Korea's hydrogen bomb news. 2. The downturn in the market is deliberate so that China's pension fund, currently in massive deficit, can reap the gains by entering the market at its low point.
- wodenokoto 11y ago
  It also coincides with the end of a 6 month ban on selling shares from top holders as well as with growing concerns that China, despite the official numbers, is actually in a recession. There is no lack of theories, but look at the insane market valuation growth last year and maybe calling it the burst of a speculative bubble is the simplest explanation.
  - netheril96 11y ago
    > calling it the burst of a speculative bubble is the simplest explanation. I do agree with that, but many people insist that it is not the truth. All kinds of theories have been invented since the collapse in July, all kinds of people have been jailed for "manipulating the market", and they still refuse the believe that the market is, just the market.

hkmurakami 11y ago

Major US indices futures are down about 1% and have been in this range for the last couple of hours. Considering Shanghai is closed, it'd be reasonable to expect markets to trade around this range tomorrow barring any significant additional developments.

kasey_junk 11y ago

> Are there any currencies maintaining their relationship with the US dollar? Over what time period? The Pound/Dollar pair is pretty stable historically. With the exception of recent intentional corrections the USD/CHF pair is usually stable (though I'm glad I was out of trading on that one particular day). Lots of currencies have the problem that they act as proxies for the natural resources of the country in question. So they vary with high correlation with commodities prices (see CAD/AUD). In many ways the USD is the opposite of that, so it's not that surprising that lots of currencies fluctuate wildly around USD.

netheril96 11y ago

> Is there any indication that these wild swings are caused on purpose? I mean they did occur after the Chinese devalued their currency again, so did they not know that a downturn in the market was going to follow? I am a Chinese and I heard two theories from my friends: 1. Today's swing is a response to North Korea's hydrogen bomb news. 2. The downturn in the market is deliberate so that China's pension fund, currently in massive deficit, can reap the gains by entering the market at its low point.

wodenokoto 11y ago
It also coincides with the end of a 6 month ban on selling shares from top holders as well as with growing concerns that China, despite the official numbers, is actually in a recession. There is no lack of theories, but look at the insane market valuation growth last year and maybe calling it the burst of a speculative bubble is the simplest explanation.
- netheril96 11y ago
  > calling it the burst of a speculative bubble is the simplest explanation. I do agree with that, but many people insist that it is not the truth. All kinds of theories have been invented since the collapse in July, all kinds of people have been jailed for "manipulating the market", and they still refuse the believe that the market is, just the market.