Stock market is at risk of 'Lehman Brothers' collapse because of China trade war, bank analyst warns

Stock market is at risk of ‘Lehman Brothers’ collapse because of China trade war, Nomura analyst warns – as stocks recover slightly from dramatic sell-offGlobal shares fell sharply Monday after China let its currency to sink to an 11-year low against the dollar, fueling concern that Beijing is using the yuan as a weaponThe Dow was off more than 767 points, a near record for a single day’s lossesMarket rebounded slightly on Tuesday morning after China bolstered the yuanTrump said the U.S. is in a strong position financially in a morning tweet intended to further stabilize shaky marketsPresident Trump suggested the Fed should respond to Chinese ‘currency manipulation’ with more aggressive rate cuts  Trump has proposed new tariffs on $300 billion of Chinese goods, spooking tech analysts who warned it could depress demand for the iPhoneThe president tweeted a clip of analyst Jim Cramer saying on CNBC: ‘pound sand, Chinese’ Another analyst, Nomura strategist Masanari Takada, predicts the possibility of a ‘Lehman-like shock’If may hit ‘harder’ than the first wave shock 

A market strategist is warning of the possibility of a ‘second-wave’ market shock that would be comparative to the sell-off triggered by the collapse of Lehman Brothers in September 2008.

Nomura quantitative strategist Masanari Takada issued the warning with blunt language raising the possibility of a second-wave ‘earthquake’ that could exceed the original stock sell-off which rattled the markets Monday, with the Dow falling 767 points overall and at one point coming close to losing 1,000 points.

‘At this point, we think it would be a mistake to dismiss the possibility of a Lehman-like shock as

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