Shanghai market falls over 5% again on Monday, but European and US markets hold steady
It is as if western investors have said enough is enough, they are not going to take down their markets again just because the Chinese market is so volatile. US markets opened for trading this Monday morning pretty much flat, while European stock markets are trading up.
The Shanghai Composite Index fell another 168.42 points to close at 3,018, a decline of 5.29 percent. Last week markets worldwide reacted to similar declines by taking down local markets. But today the German DAX is up about 1 percent, as is the French CAC and Italian FTSE Italia. The stock market in the UK is flat today.
The European Commission today ruled that a corporate tax break that Belgium has granted to at least 35 companies was illegal, continuing its crack down on special tax breaks that give companies an incentive to manage their businesses out of one country versus another. The US company most effected by the ruling is Anheuser-Busch InBev, which is headquartered in Leuven, Belgium.
The ruling is a bit of a warning to Apple, Amazon and Starbucks, who have been accused of shifting profits, especially to Ireland, to avoid national taxes.