FXStreet (Delhi) – Research Team at BBH, notes that the dramatic impulse in the markets appears to be driven more by developments in China. Key Quotes “The Shanghai Composite fell nearly 7% and the Shenzhen Composite lost 8.25%. The circuit breakers, which include a 15 minute suspension after a 5% loss on the CSI 300, and the halted after 7% drop) were triggered.” “The proximate cause was the disappointing Caixin manufacturing PMI (48.2 from 48.6 in November and expectations for 48.9). The official measure had ticked up (49.7 from 49.6). The official service sector reading rose to 54.4 from 53.6 (highest since August 2014). Sentiment toward equities was vulnerable in any event as the ban on sales by larger investors is scheduled to be lifted at the end of the week. Many also anticipate the lifting of the ban on new IPOs.” “As one might expect, both the onshore and offshore yuan fell sharply even as the spread between the two widened. The onshore yuan fell 0.6%, while the offshore yuan lost nearly 0.9%. It is the largest single day decline since August. The yuan’s fix was lower for the fifth consecutive sessions. The large losses in China reverberated throughout the region and the MSCI Asia-Pacific Index was off more than 2%.” For more information, read our latest forex news.