If European Central Bank (ECB) Governing Council members were hoping for a quiet end to the summer after the Greek drama gripped global markets in July, they were surely disappointed. Haven't we learned in the past five years that August is full of surprises often in the form of nasty volatility? This year was no exception.
This time the culprit was not Greece but China, as it unexpectedly devalued its currency and pulled several about-faces on whether it was letting the yuan float freely and whether it was propping up blue chip stocks.
One prominent Governing Council member, Vice President Vitor Constancio, played down the volatility in China's stock market at a conference in Germany last week. He added that "there are few signs of a slowdown in the Chinese economy and the country's stock market is not so connected to the activity on the ground."