End game to the oil rout, page-14

CME Sept WTI oil futures hitting new lows overnight with the devaluation of the Yuan. Although it was reported as a "one off" move the markets will be far more wary of further downward creep and I suspect the Yuan will for now become the proxy for the global economic grow outlook and for oil and commodity prices. Oil futures traders will be nervous of more unexpected moves by the PBOC. The irony is that by devaluing the Yuan China should in theory be stimulating economic activity by making exports cheaper and hence the move  should have be put upwards pressure on commodity prices. I suppose the markets don't see it this way. They just see it as a sign that the Chinese economy is weakening. Well lets face it if the US "recovery" was real then this problem wouldn't exist as Chinese exports would be rising as US consumers open their wallets. Unfortunately we live in a world of fairy tales told by the New York Federal Reserve bank and all our markets (except the bond markets) just play along sitting like 2 year olds with baited breath around the story teller waiting to see what will be written on the next page.

IMHO Keep some powder dry if you have been shopping for DLS shares.

http://www.reuters.com/article/2015/08/11/us-china-markets-yuan-idUSKCN0QG04U20150811

Eshmun
DYOR IMHO