How can the Heng Seng be up today almost 7% and at the same time FXP trend up all day to and close near the high of the day? Hmmm, something doesn't look quite right here.
The charts I compared, DJ30, FXI and FXP all made sense. FXI tracked DJ30, FXP was 2X in opposite direction. America is the largest economy, if the US consumer stops spending the whole world will suffer
"America is the largest economy, if the US consumer stops spending the whole world will suffer..."
Decoupling doesw not say the world will not react to a US downturn. What is says is that that effect is less owing to the development of other centers of growth.
In the PRC's case, there is actually more trade with the US than in previous recessions - so, the effect on the PRC economy will actually be greater than in previous recessions. Yet, when calculated, that effect is still marginal - perhaps less than a half percent.
In case you didn't notice, a reduction in export generated trade surpluses is precisely what the PRC is no trying to accomplish - so why would this be a problem?
This is the one year chart for FXI and the Dow:
As you will see, FXI for that period is up more than 40 percent. The Dow, during the same period, is flat to just negative.
Now, you post your chart and prove otherwise.