Markets plunged in China as Xi Jinping begins his third term with an emphasis on the state rather than markets. The New York Times reports that Mr. Xi’s recent consolidation of power points to a “new era in China in which national security and ideology would be a higher priority than maintaining robust growth.” Markets are not very happy. Shares plunged over 6% on Hong Kong’s exchange and Shangai was down over 2.0%. Elsewhere in Asia, Japan’s Nikkei was in the green slightly up .33%.
- NOTE: China reported that third-quarter gross domestic product grew by 3.9% from a year ago, beating expectations but not it was not enough to counter the concern of Xi’s vision for the future.
Market futures in the US are up over 2.0% with the Dow leading the way up 2.47% followed by the S&P and Nadad futures up 22.37% and 2.31%, respectively. In Europe, Germany’s DAX is well into positive territory up 1.81% halfway through the trading day while London’s FTSE is up half a point.
