Canada's Recession Quietly Adding To Volatility On Wall Street
SAN FRANCISCO (KCBS) - Here we go again. Stocks were diving as a sour mood prevails across the globe on a report that Chinese manufacturing continues to sink. But the Chinese market isn't the only thing weighing on the market.
While a number of contributors are adding to the recent stock selloff, China continues to be a main factor, as the world's second largest economy is showing signs that hit may have hit a ceiling.
The key question going forward is whether China's economy eventually levels out in a solid growth range or whether their could be bigger disruptions ahead, and how Beijing will handle them.
While China's getting nailed with most of he blame for Wall Street's selloff, there's a big problem much closer to home: Canada, which has officially entered into recession with its economy slipping in the second quarter after a bigger drop in the opening quarter of 2015.
Canada doesn't tend to garner the same kind of headlines as China given the difference in global clout, but through the first six months of this year, Canada was the number one trading partner with the U.S., ahead of China.
The stronger dollar is impacting Canadian businesses and consumers when looking to make purchases out of the U.S.