Emerging Markets Risk Status (Black Swan Capital)

Chinese shares coming back just in time ... for another fall.

We always watch inter-market correlations. We believe it helps determine capital flows which helps with timing investments and trades.  Despite a general "risk-on" appetite for global financial markets over the last few months - S&P 500 stronger, commodities stronger, currencies stronger versus the US dollar - Chinese share have taken the brunt of Chinese tightening expectations. Oddly, this risk has not seeped into global risk appetite. Indeed, we noticed from watching our inter-market correlations that the Shanghai composite had been seriously underperforming. But in the last 2-3 weeks this measure has come back in line with the general mood. For example ... READ MORE  Currency Currents 11 February 2011