China Sold Off – Will it Impact US Stocks?

China’s markets sold off overnight. Mainland shares made serious work toward erasing their gains since a January trough. Hong Kong markets were down to a lesser extent, but markets across Asia and Europe were mostly unaffected. The catalyst for the decline seems to be more jitters than justified ahead of the G20 meeting in Shanghai, but the suspects were the usual we have grown used to. The question for U.S. investors Thursday is appropriately asking whether this weakness will be isolated to China or will it infect our markets? Europe and broader Asia take their lead from the U.S., which posted a good day Wednesday, but our markets have followed China’s lead at times due to the signals it can send about the global economy and energy demand. That being said, I am more concerned about a more than one percent decline in energy prices at this hour than the local Chinese markets. Still, the uptrend for equities over the past week and a half has had good fundamental catalysts in improved Fed and economic perspectives. Futures were indicating little about the open early this morning, but I suspect U.S. equities will want to work higher for as long as no negative catalyst arises to send oil prices lower now that the Saudi Oil Minister has effectively removed the prospect of an OPEC production cut. See my full report China Sold Off Overnight - Will it Impact US Equities?

Relative Regional ETFs	Premarket 4:25 AM ET
iShares China Large-Cap (NYSE: FXI)	NA
Deutsche X-Trackers Harvest CSI 300 (NYSE: ASHR)	-6.5%
iShares MSCI Japan (NYSE: EWJ)	NA
iShares MSCI S. Korea Capped (NYSE: EWY)	NA
WisdomTree India Earnings (NYSE: EPI)	NA
iShares MSCI Australia (NYSE: EWA)	-1.3%

US Sector Securities	5:35 AM ET Premarket
Vanguard Total Stock Market (NYSE: VTI)	NA
SPDR S&P 500 (NYSE: SPY)	+0.17%
SPDR Dow Jones (NYSE: DIA)	NA
PowerShares QQQ (Nasdaq: QQQ)	NA
iShares Russell 2000 (NYSE: IWM)	-0.2%
iPath S&P 500 VIX ST Futures (NYSE: VXX)	+0.2%
PowerShares DB US Dollar Bullish (NYSE: UUP)	NA
United States Oil (NYSE: USO)	-1.4%
SPDR Gold Trust (NYSE: GLD)	+0.7%

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