2015 Redux? Mind The Red Ponzi’s Plunging Stocks And Sinking FX

With the yield curve flattening, Emerging Markets sliding, China’s currency tumbling almost as fast as its equity markets, and the global economy once again on the skid, comparisons between 2018 and 2015 are becoming increasingly louder. Indeed, with the Chinese renminbi losing 3.5% against the dollar over the past two weeks alone, and a sharp 5.5% since the middle of April when the PBOC first cut its Required Reserve Ratio,  indicating a new easing phase has begun, this has been a steeper depreciation in the Yuan than the surprising August 2015 devaluation.