Tail is wagging the dog as China uncertainty keeps markets on edge

There are plenty of statistics and market data that show that China barely has an influence on the U.S. economy. For example, the U.S. imports less than 3 percent and exports less than 1 percent of GDP to China and S&P 500 revenue from china is a mere 2 percent. But look closer and the problems take on a sharper image. The technology industry in the S&P 500, a veritable who's who of companies, has anywhere from 16 percent to 83 percent revenue exposure to China.

The U.S. economy might not seem exposed but the global economy sure is. China buys 1/8 of the world's oil and half of its base metals including copper, aluminum, nickel, and iron ore making China integral to the global commodities trade and their emerging country exporters. And the U.S. sells to these Emerging Markets in Southeast Asia, South America and further as in global integration.  

"Meanwhile, good economic data comes in and we expect this to continue with Friday's nonfarm payrolls. Of course this good economic U.S. data stokes fear that the Fed will raise rates in September", says Voya Global.