China…
3 of the top 10 best performing world equity indices in August are from China with HSCEI the best overall, gaining 6.5% in local currency terms. We find this move in China interesting as officials start to sound the alarm over the real estate market and need an outlet for that hot money flow… back into stocks – to avoid major currency weakness.
At the other end of the scale is Venezuala's market which tumbles 7.74% – which is actually better than we thought it would be.
One thing that is notable is that the last month has seen correlation across asset classes remains high… but this time it's rolling over – as Global Central Bank balance sheets actually fall modestly in USD terms…
Charts: Bloomberg
via http://ift.tt/2bHS9Bk Tyler Durden