May 7, 2019

What's behind China's stock market plunge

Data: Factset; Chart: Axios Visuals

After a 30% surge that made the Shanghai Composite Index the best-performing major stock exchange in the world, China's onshore market has stalled out since April.

Details: First, it was a change of tone from the Communist Party's top decision-making body signaling a tougher stance on economic stimulus.

  • The central bank also stopped injecting money into the financial system for 18 consecutive days in April.
  • Then the country's top companies failed to impress during earnings season.

Where it stands: That pushed Chinese stocks down almost 6% from their April high. Monday's market rout brought losses on the index to 11% from the high, technically marking the start of a correction, according to the South China Morning Post.

  • The sell-off hit both China's onshore and offshore markets, SCMP reports. "Out of the 3,524 companies that traded on the Shanghai and Shenzhen exchanges on Monday, 3,417 fell and the remaining 107 rose, while all the 50 constituents on the Hang Seng Index dropped."

Go deeper: The world can't afford a trade war right now

Go deeper

Trump acknowledges lists of disloyal government officials to oust

Photo: Mandel Ngan/AFP via Getty Images

President Trump on Monday acknowledged the existence of assembled lists of government officials that his administration plans to oust and replace with trusted pro-Trump people, which were first reported by Axios' Jonathan Swan.

What he's saying: “I don’t think it's a big problem. I don’t think it's very many people,” Trump said during a press conference in India, adding he wants “people who are good for the country, loyal to the country.”

Coronavirus only part of the story behind the Dow’s drop

Photo: Andrew Burton/Getty Images

As someone has certainly told you by now, the Dow fell by more than 1,000 points yesterday, its worst day in more than two years, erasing all of 2020's gains. Most news headlines assert that the stock market's momentum was finally broken by "coronavirus fears," but that's not the full story.

What's happening: The novel coronavirus has been infecting and killing scores of people for close to a month and, depending on the day, the market has sold off or risen to record highs.

Bernie's historic Jewish fight

Illustration: Sarah Grillo/Axios

Sen. Bernie Sanders would be the first Jewish presidential nominee of a major American political party — but that history-making possibility is being overshadowed by his conflicts with America's Jewish leaders and Israel's leadership.

The big picture: That's partly because we're all focusing on the implications of Democrats nominating a self-described democratic socialist. It's also because a candidate's religion no longer seems to matter as much to voters or the media, making the potential milestone of a Jewish nominee more of a non-event.