Mind The Red Swan—Shanghai Composite Down By More Than 20%

The mood was more subdued in China, where stocks entered an official bear market amid fears the country may not be prepared to wage a full-blown trade war with the US. Having closed on the verge of a -20% drop on Monday, the Shanghai Composite Index fell 0.5% at the close, taking its loss since a January high to more than 20%, officially entering its 4th bear market in 3 years. Airlines extended a rout as a slumping yuan boosted the cost of their dollar-denominated debt, while property developers also sank.