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U.S. futures are pointing much lower in electronic trading this morning, as trader digest the fallout from JPMorgan’s $2 billion trading loss. The U.S. markets, along with India and other emerging markets, will be under pressure as they work through the slew of headlines over the weekend.
American markets ended up shrugging off JP Morgan’s (JPM, quote) surprise announcement of a $2 billion trading loss, trading roughly flat on the day. Elsewhere around the world, other than more poor Chinese data, markets were relatively quiet compared to the heavy volume of news over the past few weeks pertaining to Europe.
Former Morgan Stanley chairman and Yale University lecturer Stephen Roach has opined in the Financial Times on ten reasons why China will continue to prosper.
Markets halted a prolonged skid on Thursday, as news from Europe was today mercifully limited. However, Chinese trade data and Indian currency intervention may give traders pause about the health of the world economy.
Yesterday traders saw the Aussie dollar lose ground as sentiment shifts away from risk only to flip today to more risk on, making the Aussies the strongest currency today.
While China’s banking sector is often considered both megalithic and monopolistic, there are actually over 4,000 small lenders operating in the giants’ shadows. U.S. traders can even get direct exposure to a few.
If there was ever any doubt that Beijing benefits from a strong currency (CNY, quote), it’s over now. China is beginning to test the influence of its money on the world economy, and it’s doing so with Iranian oil.
