Global markets were forced to contend with elevated bouts of volatility this week, but ultimately US stock indices stayed within reach of the all-time highs hit earlier this year. Emerging market FX swings precipitated a spike in risk off sentiment through mid-week. A plunging Turkish Lira brought about worries regarding European bank exposure, and
contagion fears were exacerbated by another move lower in the Yuan which approached levels not seen in nearly a decade. China growth concerns emerged after another string of disappointing economic data came alongside weak corporate reports by several Chinese tech darlings. US stock markets continued to outperform the rest of the globe and the Dollar index surged above 96. Treasury prices also benefited modestly from risk-off flows keeping yields subdued and flattening the US 2-10 year spread back below 25 basis points. Late in the week equities surged on news the US and China would restart trade negotiations in Washington next week ahead of a multilateral summit in November. For the week the S&P
Macro :
- As Euro Crisis Ends, Italy Stokes Fear of a Revival, Concern comes amid market jitters over Italian debt, attacks by politicians in Rome on Europe’s establishment - WSJ - https://on.wsj.com/2vWbvzg
Keep an eye on :
- C US : ValueAct takes $1.2 billion stake in Citigroup: letter - Reuters - https://reut.rs/2Pdw8iB
- JE/ LN : Prudential lines up Just Eat boss to spearhead demerger of M&G - http://bit.ly/2N3XpTe
- PRU LN : Prudential lines up Just Eat boss to spearhead demerger of M&G - http://bit.ly/2N3XpTe
- SPM IM : Saipem’s robots set to cap undersea oil blowouts - FT - https://on.ft.com/2OKNmTo
- VPK NA : Vopak conducting strategic review of four European oil terminals