Equity markets in Asia are down across the board and S&P500 futures are lower by over 25pts or over 1% in the wake of Jackson Hole symposium that proved to be less inclined toward continued accommodation than anticipated. In Fed Chair Yellen's absence, remarks from Fed Vice Chair Fischer were scrutinized particularly closely, as he indicated the FOMC will not wait for 2% inflation to raise interest rates. Fischer did acknowledge some recent market volatility and China slowdown, but was also skeptical that there's causality in China market turmoil from Fed tightening expectations. On inflation, Fischer said energy price decline is a one-off temporary factor, suggesting the Fed will seek to avoid the perception of being behind the curve. Fed watcher Hilsenrath summed up the meeting by noting policymakers have maintained the view of improving US economy and jobs market, adding that doves such as Kocherlakota are not finding much support. Outside of Fed-speak, BOE Gov Carney also noted the slowdown in China will not deter UK from raising rates early next year. China announced it would end the 75% loan-to-deposit ratio cap effective Oct 1st and also cap local govt debt in 2015 at CNY16T - up just CNY0.6T from 2014-end levels. China Commerce Ministry also said CNY devaluation was a "normal adjustment", and then firmed by the midpoint fix by a significant amount for the 2nd straight day. China Premier Li saw the economy within "appropriate range", but acknowledged traditional drivers for growth are not as strong, requiring more support in public goods and services sectors. Also of note, an FT report added to the pressure on the Shanghai indices, speculating the govt has abandoned measures to boost the stock market after spending as much as $200B over the past two months. Instead, the report said regulators will focus on investigating institutions that obstructed govt measures. In response, CSRC chairman reportedly ordered 50 major brokerages to continue to offer funds to the CSF.
Nikkei -1.40% Hang Seng -0.24% Shanghai -2.25%
Eur$ 1.1246 CNY 6.3785 JPY 121.14 GBP 1.5426 EURCHF 1.0796 RUB $65.84 WTI $44.61 (-1.42%)
S&P -1% EuroStoxx-1.04% Dax-1% SMI-1.15%
Macro :
- ECB’s Constancio: Inflation Influenced by Negative Demand Shocks
- El-Erian Says Jobs Report Could Be Key to Fed in September
- Obama Inches Closer to Veto-Proof Support for Iran Nuclear Deal
- Fed, ECB, BOE Officials All Say They See Inflation Rising
- 3 Reasons Markets Lost Faith in China's Economy, At a Glance
Keep an eye on :
- ABG/P SM : Abengoa in Talks With BlackRock to Back Share Sale: Cinco Dias
- AGS BB : Ageas Agrees to Sell Hong Kong Unit to JD Capital for EU1.23b
- AH NA : Ahold Raised to Baa2 from Baa3 by Moody’s, Outlook Stable
- ALU FP : Alcatel Changed Incentive Plan Conditions Because of Nokia Deal
- ALU FP : Alcatel CEO May Get Up to EU13.7 Million as He Quits, JDD Says
- ALV GY : Borealis, Allianz Said to Jointly Bid for City Airport:Telegraph
- AVV LN : Aveva shares gain on talk of possible counterbids from US and German engineering groups - FT
- CS FP : AXA CEO: Europe Needs Favorable Ground for New Economy: Echos
- BIM FP : BioMerieux Confirms 2015 Targets as First-Half Net Rises 17%
- BNP FP : BNP Paribas Fortis 1H Net EU811 Mln vs Restated EU567 Mln
- BXLT US ; Baxalta Said in Talks to Buy Ariad to Boost Oncology Offerings
- BAYN GY : Bayer to Weigh New Three-Pillar Structure, Handelsblatt Reports
- BOL FP : Bollore Plans New Canal+ Management Structure: Echos
- BMW GY : BMW to Recall 16,202 Vehicles in China on Airbag Defect
- DBK GY : Deutsche Bank Job Cuts May Cost Billions, Welt Am Sonntag Says
- ENI IM : Eni discovers ‘supergiant’ gasfield near Egypt - FT
- ENI IM : Eni to Get License for Field Off Egypt Within Months: Repubblica
- ERF FP : Eurofins Raises 2015 Forecast, Brings 2017 Goal Forward to 2016
- ILD FP : Iliad 1H Ebitda Beat Estimates; 820,000 New Mobile Subscribers
- ISAT LN : Inmarsat Confirms Successful Launch of Third GX Satellite
- LHA GY : Lufthansa to Combine Airline’s Pilot Training Centers: Spiegel
- MUV2 GY : *MUNICH RE TO REPURCHASE UP TO 11M SHARES FOR MAX EU1B
- SAB LN : SABMiller Said to Strengthen Takeover Defenses: Sunday Times
- SHP LN : Shire Said Ready to Cut Costs $1b on Baxalta Deal: Sunday Times
- SYNN VX : Artisan Partners Says Syngenta Threw Away $15b-$20b: WSJ
- SYNN VX : Some Syngenta Shareholders May Seek Board Changes on Bid: WSJ Link http://on.wsj.com/1LN2pIt
- VGP BB : VGP 1H Net EU32.2 Mln Vs EU43.4 Mln; Net Rental Income EU6.5 Mln
- VOW3 GY : German Carmakers Cut 2015 China Sales Outlook on Turmoil: Focus
- VOW3 GY : Volkswagen to Sell 19.9% Stake in Suzuki Motor Corp After Ruling
- VOW3 GY : Volkswagen Says It’s Undecided Regarding Buyer for Suzuki Stake