China's equity markets and currency stabilised today with the help of People's Bank of China's Yuan intervention. The dispersion around the expected growth of China that is tilted on the downside is the continued cause of instability. The global growth will be good enough if the Chinese economy expands at the targeted rate of 6.5%, but not if it expands much lesser than the expected rate. With sluggish economic growth in China, growth in Emerging Market will be weaker, and commodity and energy prices lower. China expected to be a continued source of volatility.
