Now, in volatile summer markets there remains every possibility of traders becoming spooked again next week and ‘Black Monday 2: Even Darker’ ensuing, but should that transpire it would likely be relatively short-lived once again.
What underpins this is the fundamental performance of the US economy and to a lesser extent the UK and parts of Europe.
Growth seems to be accelerating rather than flattening out or tailing off. GDP numbers just released for the US and UK look decidedly rosy.
The US authorities said that annual growth has been revised upward and is heading for an impressive 3.7%, while the UK announced that it is on track for growth in the order of a not-too-shabby 2.7%.
Indeed, forecasters including Bank of America Merrill Lynch still expect a rate hike to go ahead in September, as has been long expected.
Commentators and markets watchers of various stripes have begun pointing out that nothing of substance actually changed in China on Monday, or even in the preceding days and weeks.
It had been widely acknowledged that Chinese shares were in bubble territory for some time, with a correction due. It has also long been believed by many that Chinese economic growth was slowing more sharply than had been fully communicated thus far.
