Shanghai Composite now a must-watch indicator

Hong Kong

FORGET US Treasuries and the euro. If Bank of America Corp is right, the new must-watch indicator for global bond and currency markets comes from somewhere few traders would think to check: the Shanghai Composite Index of Chinese share prices.

"Normally, when I come into the office, the first thing I look at is where 10-year Treasury yields are trading, where euro-dollar is trading," David Woo, the head of global rates and currencies at Bank of America, said. "These days, the first thing I look at on the Bloomberg terminal is where the Shanghai Composite is trading."