Quick Morning Market Comment

The 8% slide in China has cast a bit of pall over most markets going west from Shanghai. This would include the U.S. marts where a modest knee jerk lower is indicated by a 5 point decline in S&P futures. But the dips in Euro markets have only been around a half percent and in Asia, while China was sooning the Korean market rose more than 1% to a record high. The force that continues to keep major contagion at bay, at least here in the states, is liquidity driven M&A. Again there are a wide variety of deals. The Yen carry trade is also not unraveling in the face of Chinese market tremors; no major flight to quality toward the Japense yen which would mean double trouble for U.S. stocks. Yen futures on my screen up 25 points. 10 yr treasury is up 2/32nds, taking the yield a hair below 4.95%.