When Trump began his trade war with China, the Street's narrative was "decoupling". It took a few years, but it's finally happened. As China's economic outlook and market deteriorated, it did not drag down the economies of Europe and North America.
To be sure, the news out of China is grim. A series of "common prosperity" crackdowns, financial restructuring, and a slowing economy have combined to tank Asia's stock markets. The relative performance of the markets of China and her major Asian trading partners against the MSCI All-Country World Index (ACWI) has been weak. With the exception of Taiwan, all have broken key relative support levels indicating relative underperformance against global equities.
The good news is other developed markets have held their ground. That's what decoupling looks like.
The full post can be found here.
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