May 7, 2019

What's behind China's stock market plunge

Dion Rabouin, author of Markets
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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

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Biden formally secures Democratic presidential nomination

Joe Biden speaks at Delaware State University's student cente on June 5. Photo: Jim Watson/AFP via Getty Images

Former Vice President Joe Biden became the formal Democratic presidential nominee on Friday evening, per AP.

The big picture: Biden has been the presumptive frontrunner to take on President Trump since Sen. Bernie Sanders suspended his campaign in early April.

Updated 5 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 9 p.m. ET: 6,724.516 — Total deaths: 394,018 — Total recoveries — 2,996,832Map.
  2. U.S.: Total confirmed cases as of 9 p.m. ET: 1,894,753 — Total deaths: 109,042 — Total recoveries: 491,706 — Total tested: 19,231,444Map.
  3. Public health: WHCA president says White House violated social-distancing guidelines to make reporters "a prop" — Jailing practices contribute to spread.
  4. Sports: How coronavirus could reshuffle the sports calendar.
  5. Jobs: Better-than-expected jobs report boosts stock market.
  6. Media: The Athletic lays off 8% of staff, implements company-wide pay cut.

Scoop: German foreign minister to travel to Israel with warning on annexation

Heiko Maas. Photo: Michael Kappeler/picture alliance via Getty Images

German Foreign Minister Heiko Maas is expected to travel to Israel next week to warn that there will be consequences if Israeli leaders move forward with plans to annex parts of the West Bank, Israeli officials and European diplomats tell me.

Why it matters: Israeli and European officials agree that if Israel goes ahead with unilateral annexation, the EU will respond with sanctions.