OVERNIGHT

The route is on. That is how Reuters, "China stocks trading halted after rout," describes the Chinese market after "the second time this this week" trading was halted, pushing the panic button for investors on regional currencies and stocks.

Once again the PBOC sideswiped investors when it forced the yuan  0.5 percent lower against the dollar, "the biggest daily drop since last August, when an abrupt near 2 percent devaluation of the currency also roiled markets."

CNBC described the action this  way:

 China’s stocks were suspended from all trade on Thursday after the CSI300 tumbled more than 7 percent in early trade, triggering the market’s circuit breaker for a second time this week. That drop-kicked stock markets across Asia, which were already wallowing after a weaker open amid concerns over China’s economic slowdown and its depreciating currency as well as falling oil prices. On the mainland, the Shanghai Composite tumbled 7.32 percent by at the time of the halt, while the Shenzhen Composite plummeted 8.34 percent. The CSI300, the benchmark index against which China’s new circuit breakers are set, plunged 7.21 percent. If that index rises or falls 5 percent, the market halts all trade for 15 minutes. If it moves 7 percent, trading will be suspended for the rest of the day. In total Thursday, China shares only traded around 15 minutes.

Fifteen minutes, that's a short time for a lot of carnage. How European and U.S. markets react when they open is anyone's guess. Ours is more of the same. According to the WSJ, the PBOC blamed the chaos on spectulators trying to profit from a weaker yuan. "The PBOC on Thursday said speculators were responsible for the recent dramatic yuan weakening and it vowed to keep the yuan largely stable." Blaming speculators for fiscal and monetary incompetence is hardly new. So here's a question from Mr. Volatility: "How do you like me now?"  Let's see where European and U.S. markets close later to ask investors there.