Charting the Markets: The Pendulum Swings Back to China

A combination of weak Chinese economic data and lower commodity prices is weighing on global stocks for a second day. China's exports fell by a bigger-than-forecast 6.8 percent in November in dollar terms. Imports declined for a record 13th month, sinking 8.7 percent. China's yuan weakened to the lowest in four years after the central bank cut the currency's fixing. The action came after a report on Monday showed the nation's foreign-exchange reserves slid more than expected in November as the People's Bank of China sold dollars to prop up the yuan.

Emerging markets are having to contend with weak China data, falling commodity prices and the prospect of higher U.S. interest rates. The MSCI Emerging Markets Index is on track for its lowest close since Oct.1. The gauge has sunk 16 percent in 2015, its worst year since 2011, and is close to being oversold. The so-called relative strength index has dropped to 33, the lowest in three months. A level of 30 or lower signals to some traders that selling is overdone.