It is too early in the day to be sure, but at the moment the UK's FTSE 100 index is well up on the dramatic falls seen yesterday.
is still spooking the stock markets around the world. Investors are
worried by the slower growth in China and are wondering if its engine is
losing steam and the impact this will have on the world. Lots of us are
dependent on China as big pension funds may have invested heavily in
At one time we were all worried by Japan. Then the Japanese ran out of steam and everyone saw China as the new engine of growth (and low costs) in the Far East.
For too long we have lived off low cost imports from China. Perhaps that era is drawing to a close? Not quite yet, but at least the prospect is now real. Maybe we'll see European manufacturing again in ascendance? The sooner we all live within our means the better. The last few years were a blip.
UPDATE 1712z: In the end the FTSE 100 index ended up over 3% higher. This crisis is far from over. The Chinese government has reduced interest rates. This will encourage companies and individuals to become even more indebted. When the crash finally comes, and it will, these investors will lose big time. This will make the Wall Street Crash of 1929 look tame. No, we should be seriously concerned by developments in China. We in the west will be affected.