Its the economy stupid.

Major Hat Tip to "Bayou Man" for the link.

via The Telegraph.

1 - China slowdown
The Chinese economy is slowing and this increases risks for investors around the world. China contributes more than a quarter of world economic growth and is the largest buyer of commodities in the world to fuel its massive construction boom.
2 - Iron ore price slump
Iron ore is an essential raw material needed to feed China's steel mills and as such is a good gauge of the construction boom.
The numbers coming out of China's steel industry are shockingly bad. Shanghai steel futures have fallen to a record low and the sector’s profit margin has also apparently halved to just 0.3pc. A survey of China steel mills that incorporated 2,235 firms or 88pc of Chinese listed companies showed that much of the industry was reliant on subsidies from the state to remain porofitable.
3 - Oil price slump
The oil price is the purest barometer of world growth as it is the fuel that drives nearly all industry and production around the globe. China is also the world’s number one importer of oil.
Brent Crude, the global benchmark for oil, has been falling in price sharply during the past three months and hit a two-year low of $97.5 per barrel, below the important psychological barrier of $100.

Read it all.

I keep saying that this artificial construction called globalization is going to collapse and this is another piece of evidence that a global recession is on the horizon.