Market history · Markets ·
China's yuan devaluation and 'Black Monday'
Chinese equities had surged and then fallen sharply from mid-June 2015. On 11 August China's central bank changed how it set the yuan's daily reference rate, producing a devaluation of nearly 2% and raising fears about the health of the economy.
On Monday 24 August global markets sold off heavily; US stocks fell so sharply at the open that some individual shares were halted by circuit breakers, and the Dow briefly fell by over 1,000 points. Markets steadied within days.
The takeaway
Volatility clusters: liquidity can vanish at precisely the moment it is needed.
This is a retrospective about a past event, provided for general information. It is not investment advice, does not describe RockLake's positioning at the time, and past performance is not a guide to future performance. Read the risk warning.