The markets became sad in August. Just fear, frustration and appeals to think twice before going long in stocks spread all over the trading world. Analysts are waiting for a turnaround after the selloff, because investors will be searching opportunities to deposit funds. While the Chinese slowdown generates a specter of the great depression and bears out the impossibility of the free market communism, the U.S. economy strengthens. The Russians got nervous in front of the Chinese crisis and a new military U.S.- China agreement . The mysterious Russian soul experiences economic autism. Unfortunately, living in the global world you do not get a chance to blossom out by yourself, either as a single country or a human being. Our civilization transforms into a network of connections, where logistics is more valuable, than inspiration. Inspiration, creation, production need to be continued by manufacturing, advertising and delivering. In the modern Chimerica the brain and heart could not succeed without hands and shoulders. Shanghai stocks collapsed and triggered the selloff on the New York Stock Exchange. Traders threw away stocks of the elite companies. Netflix Inc., Facebook Inc., Amazon.com Inc., Google Inc. and Apple Inc. have lost $97 billion of the market value in two last days of the week! Nasdaq drowns in the hi-tech selloff. Dow Johns and S&P 500 return to their 2011 levels, therefore correction of the indexes is on the agenda.
To be honest, the Wall street Stock Exchange anticipated a drop owing to the last Fed minutes combined with the oil prices. And the latter ones are the most significant factor at the markets all over the world. Keeping in mind the prognosis of $75 a barrel at the end of 2015, traders witnessed an intraday low of $39.86 a barrel on the New York Mercantile Exchange and $45.07 a barrel on the ICE Futures Exchange in London. The producers all over the globe are blanching in terror whether the oil will rush down to $20 a barrel. Even Saudi Arabia issued sovereign development bonds worth 32 billion riyals in June and August first time after 2007. The bonds were sold to local banks. They still keep smiling in the Oil Kingdom, however mind the gap in the budget. Will Saudis appeal for OPEC meeting before the one scheduled for December 2015? The oil traders feel skeptical. Fortunately, there will come a rescuer! Iran’s Oil Minister, Bijan Zanganeh offered an emergency date to stabilize the oil and improve the mood. If Iran is running out of cash, the crisis does make sense. No complains.