China’s economic growth slowed for the quarter to 6.9%, the first sub -7% quarter since 2009.
The Chinese finance minister cited the slowdown on uneasiness over a Federal Reserve rate hike. But last month Fed chief Janet Yellen cited slowing growth in China as one of the reason not to raise rates.
So who is the cart and who is the horse in this scenario? The Fed will meet again next week and maybe cite slow growth as a reason to stand pat.
Today 28 years ago was the Crash of ’87, which was called Black Monday. The Dow fell nearly 23% on the day on record volume. The crash ended a 5-year run up in stocks on recession fears.
Some cite this as the first real-time market intervention by the Fed. The central bank stepped in to guarantee lending between banks early on Monday morning since the global crash, which started in Asia, moving through Europe markets before coming ashore here.