China's Stock Market down 7% today

[bucket]

But it does nothing. They are trading air.


The people that produce something in factories or farms are what countries need.

They are trading oil higher because a middle east change in attitude while inventories grow.

Gas prices at pump continue higher when between the weather and the inventories the people producing something should be getting a break.

[errolanderson]

bucket . . . you are right, trading air is called a market bubble.

The Fed built it and Wall Street is the benefactor. But two key factors will impact market direction in 2016(IMO).

1. China's economy. China does consume
about 50% of global economies. Direct impact on Canada's economy/loonie.

2. The growing cold war between central bankers. This can also be a currency war. This could get ugly in 2016.

[errolanderson]

My mistake; meant China consuming 50% of global commodities, not economies.

But heck, they are effectively gobbling up global economies are well.

[bucket]

Could be China looking for deals.

I will never forget going to a combine to customer event and talking with a salesman. He said if wheat dropped the chinese would renegotiate price while the boat was halfway across the ocean. It then became a go or no go .... usually go.

Then he finished by saying " .... they are crooks..."

And they have hundreds of years of trading experience. That and can set the deal they want because of their size.

[samhill]

I should add that since China seems to be the importer controlling prices, don't forget that they also believe farmers should have a subsistence income.
Many farmers also believe that, as they wish to produce to the point of less than cost .
Somewhat murky water as the cost of land is a large part of production and usually farmers increasing that cost.
Therefore, IDK.