Must-Read: John Authers: Renminbi Shift Challenges Global Markets: “Commodity prices continue to fall…

…With US companies almost having completed announcing their profits for the second quarter, only one sector has disappointed the forecasts set for it two months ago. That is industrials, the most directly exposed to China…. According to Citi, the 48 largest developed market stocks that get at least 30 per cent of their sales from China have collectively fallen 10 per cent since June…. It is best to assume that the PBoC really means that it merely wants to bring market discipline to its currency and does not want to devalue; and instead to focus on the risk that problems in the Chinese economy end up forcing a devaluation anyway…
http://www.ft.com/intl/cms/s/0/9898ee56-41e8-11e5-9abe-5b335da3a90e.html?siteedition=intl#axzz3ijEDv2Tn