Dow-1.21% S&P-0.93% Nasdaq-1.27% Russell-0.95% VIX 13.62 +11.37%
US Market close lower pushed by Yuan's devaluation, this decision weighted on Asian & european mkt. The move invited renewed trepidations about the pace of economic growth in China while also feeding concerns that China's trading partners may feel compelled to respond by weakening their own currencies. For instance, the Japanese yen was in focus during the session amid speculation the Bank of Japan may be forced to step up its easing efforts to support the country's exporters. As a result, the dollar/yen pair climbed 0.4% to 125.07, nearing a 13-year high...S&P is back below its 50d & 100d MA. GOOGL +4.1% on new structure announcement...AAPL-5.2% INTC -2.26% MSFT-1.94%. rate-sensitive telecom services (+0.1%) and utilities (+0.5%) ended in the green, benefitting from strength in the Treasury market that sent the 10-yr yield lower by nine basis points to 2.14%. Volume were above average @ 830mil shares...GOLDS +0.38%...US GE snnounced saled health lender to capital one for $9bil, Berkshire maybe cut by S&P on leverage from Buffet deal...After Hours HTM +13%, SLW +6.0%, CSC +1.3%, FENG -13.1%, FOSL -5.3%, CREE -3.8% following earnings/guidance...In Asia, PBoC defended its continued intervention as being rooted in analysis of economic data, adding China fundamentals still do not support "continuous" depreciation as there is no economic basis for Yuan's constant devaluation. Late in the session however, a big miss in China July Industrial Output and multi-year low in Fixed Asset Investment seemed to justify PBoC's use of currency lever in defending the economy. IMF statement endorsing the PBoC move allowing more market forces to play a role, Offshore Yuan is down even more sharply than yesterday, falling over 2.5% to CNH6.55. Regional emerging FX (SGD, KRW, INR, etc) are also at multi-month/years lows, while other EM central banks are raising their currency war deflector shields - Vietnam central bank widened its dong trading band to 2% from 1%, India central bank reportedly intervened against INR selloff, and Korean authorities said they are watching the situation closesly. BOJ adviser Kawai noted that any further policy action from the central bank would likely be an easing rather than an exit from QE. In a somewhat outdated set of minutes from July, the BOJ members agreed the easing is exerting its intended effects, though a few did concede that the effects of monetary easing on lowering real interest rates were diminishing.
Nikkei -1.42% Hang Seng -2.14% Shanghai -0.31%
Eur$ 1.1076 JPY 125 GBP 1.5568 EURCHF 1.0904 RUB $64.3966 INR $64.7850 GOLDS 1,112.68 (+0.35%) WTI $43 (-0.19%)
S&P -0.58% EuroStoxx-1% Dax-1% SMI-0.56%
Macro :
- Greek Crisis Not Over as Deal May be Difficult to Implement: Q&A
- Greek PM Tsipras Says Bailout Bill Needs to Be Voted by Thursday
Keep an eye on :
- ATC NA : Softbank Floated Idea of Sprint Sale to Comcast, Altice: WSJ
- GBF GY : Bilfinger Sees FY Output Volume at Prior-Year Level
- BMW GY : Billionaire Quandt Seeks BMW Takeover Rules Exemption: Reuters
- BMW GY : BMW Says Mostly Hedged in Principal Currencies for This Year
- BSLN SW : Basilea’s Ceftobiprole Received Qidp Designation From U.S. FDA
- BDT GY : Bertrandt 9m Operating Profit EU62.1m, Up 3.1% Y/y
- CRBN NA : Corbion 2Q Ebitda Ex-Items, Rev. Beat Estimates
- CSGN VX : Credit Suisse Dark Pool Fine Seen in ‘High Tens of Millions’:WSJ
- DAI GY : Daimler Sees ‘Slight’ Effect on 2015 EBIT From Yuan Devaluation
- DAI GY : Daimler Tries to Kill French 35-Hour Workweek in New Labor Deal
- EOAN GY : EON 1H Underlying Net in Line, Confirms FY Forecast
- EVT GY : Evotec Swings to 1H Operating Profit, Sees FY Rev. Up 35%
- GEBN VX : Geberit Says Construction Industry to Remain Challenging in 2015
- HEN3 GY : Henkel 2Q Organic Sales Growth Misses Ests., Confirms 2015 Goals, Henkel Bought Industrias Wet Line for EU53M on July 16
- MMB FP : Lagardere to Buy Paradies for $530m to Expand in U.S. Travel
- OMV AV : OMV 2Q Clean CCS Net Attributable EU364m vs Est. EU255m
- OPERA NO : Opera Software Sees 3Q Revenue in Range of $148M to $153M
- OSR GY : Cree numbers
- RWE GY : RWE Said to Plan Cutting 2015 Profit Outlook Thursday: WSJ
- RWE GY : RWE Says It Won’t Publish Ad-Hoc Release Before Aug. 13 Earnings
- STCBV FH : Stockmann 2Q Loss Per Share Wider Than Ests, Co. Keeps Outlook
- TLX GY : Talanx 2Q Net Income Drops 64%; Gross Written Premiums Up 13%
- TFI FP : TF1 July Viewership Lowest Ever After 2014 World Cup, Echos Says
- TSCO LN : Tesco’s Dunnhumby Unit Said to See Bids <GBP700m: FT
- UBSN VX : UBS Says Gerard Cremoux to Be Latin America Chairman in New York
- FR FP : Toyota to Stop Buying Navigation Systems From Denso(6048 JP): Nikkei