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Return of risk is root cause of market shock

The slide in oil extends back almost 18 months when the price for Brent crude fell from US$110 per barrel in June 2014 to US$60 six months later.

AT first glance, the present sell-off in equity markets may be attributed to three factors - weak oil, which indicates soft global demand and hence is a harbinger of poor growth; the worry of deflationary forces being unleashed, especially in Europe, that could then lead to "Japan style" lost...