Dow Jones had the worst trading days on Tuesday, shedding 799.36 points on renewed fear of US and China trade war and the inversion of bond yield between 2 months bond yield and 5 years.
It was said to be the perfect storm no one wanted to see it happened. As a result, all markets ended in the red, except China in green, but actually red from world standard. Having said that, liquidity flow can be detected flowing into Shanghai market and emerging markets recently, which explained they all fell in sync with Dow Jones but just not as deep.
On Wednesday, US markets closed to pay tribute to the late President, senior Bush. Markets could well sigh a breathe of relief.
And there were signs that the dramatic sell off of Dow Jones could well be a hip cup of the fluctuating market these days because program selling played a large role yesterday, which didn’t necessarily mean US markets was next to recession, as the inversion of bond yield as interpreted. Many said “This time id different”.
So how different was it? Why the market fared so bad yesterday? And what’s the present situation of the markets?
Our guest, independent economic analyst and strategist, Dr Po Man Chan, will explain.
