With the MSCI Emerging Markets Index now down 15% from its recent high and WTI crude oil down some 26% from its recent high, both series are at a critical juncture testing important lows that, if broken, could open the door for a much larger decline. We also remind readers that copper has continued its long-term rerating of late.

The reason we point this out is that we believe them all to be linked to a certain extent to the slowing China/global growth meme. Indeed, all three are highly sensitive to the growth/inflation and liquidity environment and all sending the same message that the world is becoming more disinflationary, not less.