Weekly Performance :
Dow-5.82% S&P-5.77% Nasdaq-6.78% Russell-4.61% EuroStoxx-6.98% FTSE -5.54% CAC-6.57% Dax-7.83% Ibex-5.58% MIB-6.46% SMI-5.86% Nikkei -5.28% Hang Seng-6.59% Shanghai-11.54%
China's yuan revaluation experiment seemed to end as rapidly as it began, just in time for the Chinese stocks to resume stomach-churning declines. On Tuesday, the Shanghai Composite saw its biggest slide since late July, dropping 6.2%, prompting the PBoC to engage in a series of massive liquidity injections. Equity indices around the globe followed China lower: the S&P500 had its worst week in almost four years dropping 5.8%, the Nikkei lost 5.7%, and the Euro Stoxx 50 fell 7.2%, while many emerging market stock and bond markets saw even worse losses. With China looking very sick, commodities saw more big losses: copper fell for the seventh straight week and WTI crude racked up its eighth straight weekly decline falling below $40 a barrel, its longest losing streak since 1986. Investors poured over the minutes from the July 28-29 FOMC meeting but no conclusive bias for or against rate hikes could be divined from the document. With uncertainty and tensions building in every corner of global markets, the 10-year UST yield gradually slipped lower, losing another 15 basis points to end the week below 2.05%. TIPS breakeven spreads in Europe and the US declined to levels not seen since January as freefalling commodity prices and global growth concerns showed up in various market inflation gauges. EUR/USD rose more than three big figures to 1.1370, approaching two-month highs, while the greenback lost ground to the Japanese Yen and Swiss Franc too. Emerging market currencies continued to get throttled on a host of political and economic worries. Gold prices surged 4% aided by risk averse flows, namely equity market selling. On Friday, the DJIA traded down by as much as 500 points intraday, and the VIX volatility index rose to its highest level since last October (during the Ebola scare), the last time the S&P 500 broke below its 200 day moving average.
Macro :
- China’s Central Bank Seen Cutting Lenders’ Reserve Ratios: WSJ
- WTI Crude Plunges Below $40 1st Time Since 2009 Amid Supply Glut
- German Pension Subsidies to Reach Almost EU100b in 2019: Bild
- De Guindos Says Spanish Economy to Grow About 1% in 3Q: EFE
- Donald Kohn Says Fed Will Be Cautious in Rate Decision: El Pais
Keep an eye on :
- AV/ LN : Aviva Could Grow 20% After Long Makeover - Barron's
- BPTY LN : GVC prepared to abandon Bwin takeover attempt
- CLSO GY : Claas Sees Stable 2015 Sales, Bucking Slower Market: HB
- CON GY : Bosch, Continental Mull Here Mapping Stake: Automobilwoche
- DCEL US : Digicel expected to raise USD 1.5bn in NYSE listing
- FNC IM : Finmeccanica CEO Targets Profit From Ordinary Activities, Focus on Aerospace, Defense, Security
- GKN LN : GKN considers sale of Land Systems unit -Sunday Times
- NOK1V FH : Bosch, Continental Mull Here Mapping Stake: Automobilwoche
- NOVN VX : GSK sells ofatumumab for auto-immune indications to Novartis for up to $1bn plus royalties, $300m payable at closing, $200m payable subject to the start of a phase III study in relapsing remitting multiple sclerosis by Novartis; further contingent payments of up to $534m payable on the achievement of certain other development milestones, 12% Royalties.
- ROG VX : Barrons article on Cancer, mentioning Roche as one of the leader on new cancer treatment.
- RDSA NA : Iran Says Shell to Pay $2.3B Oil Debt When Sanctions End: Shana
- TSCO LN : Tesco sale value could suffer from weakened Korean won
- WOS LN : Wolseley Chief Ian Meakins Plans to Retire in 2016: Times