China exports are down by 10% causing an equity selloff, according to Peter Garnry, Saxo Bank head of equity strategy.

It shows that sentiment is fragile on equity markets and a continued slowdown coupled with a Chinese currency devaluation could be on the table. This might even have an impact on global equity markets and delay Federal Reserve rate hikes.

Garnry has chosen to hedge his long positions by selling S&P 500 and Dax.