“The importance of Europe cannot be understated. The EU is China’s second largest export market, and arguably the biggest contributor to their economic slowdown. China’s exports to Europe plunged over 16% in July compared to last year,” according to the report.
In diversified ETFs, Vanguard MSCI Emerging Markets (NYSEArca: VWO) fell Thursday for the fourth straight session and is trading below its 50-day moving average.
“Economic data is going to be weak for a while and it’s not something very surprising,” Gaelle Blanchard, an emerging-markets strategist at Societe Generale, told Bloomberg News. “If we have positive steps that the market expects from the Federal Reserve and the European Central Bank, it could lead to a new wave of market optimism.”
iShares FTSE China 25
Vanguard MSCI Emerging Markets
