Chinese stocks slid in early Friday trading, an indication of entrenched investor pessimism even after authorities urged the nation’s top financial institutions to help stabilize a struggling market.
The CSI 300 Index of shares in Shanghai and Shenzhen dropped as much as 0.7% shortly after the opening bell, extending its slump this month to 7.7% and keeping it as one of the world’s worst performers this year. A key gauge of Hong Kong-listed Chinese firms declined a maximum 1.3%. The selling came after the China Securities Regulatory Commission used a seminar Thursday with executives from the country’s pension fund, some large banks and insurers to ask them to boost support for the market. The market’s indifference isn’t necessarily a surprise, given regulators have held similar meetings regularly in the past and they have rarely had a significant impact. Source: Bloomberg
NASDAQ's bearish cross. The 21 day has now crossed the 50 day moving average.
NASDAQ futures putting in the biggest down candle in a long time and it looks like we have a new short term trend channel to watch. Source: TME
Images of Powell arriving at Jackson Hole have just surfaced. $SPY
Source: TrendSpider
The median year since 1928 has experienced a 13% intra-year drawdown in the S&P 500, making 2023 relatively mild by comparison
The 7.8% pullback in February-March is the largest thus far. Soruce: Charlie Bilello
The BRICS economic coalition of emerging markets has decided to extend membership invitations to six nations.
The BRICS alliance — which presently reunites Brazil, Russia, India, China and South Africa — is set to invite Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates to join, Ramaphosa said in a speech published on the X social media platform, previously known as Twitter. The new composition of BRICS will control 80% of world oil production. The same goes for the sharp GDP growth of the new BRICS countries. It will amount to 30% of world GDP and exceed $30 trillion. Source: Sprinter, MoneyRadar
Strange day on Wall Street. Despite Nvidia blockbuster earnings the Nasdaq is in the red
Within $SPX the pockets of strength are in real estate, utilities, financials, healthcare, and consumer defensives. Low vol is outperforming high beta. There are rotations to safer parts of the market happening underneath the surface. Source: Markets Mayhem, Bloomberg
A fresh increase in the Atlanta Fed’s GDPNow model reinforces the reasoning behind hawkish-for-longer monetary policy, which is weighing on equities and bonds
The latest model estimate shows real 3Q GDP growth of 5.9%, up from 5.8% on Aug. 16 (it was less than 4% two weeks ago). Source: J-C Gand, Atlanta Fed
Lira Rallies as Turkey stuns with biggest rate hike in years
The central bank raises benchmark rate by 750 basis points. Turkish currency surges more than 5% against the dollar. The Monetary Policy Committee, under Governor Hafize Gaye Erkan, raised the benchmark one-week repo rate to 25% from 17.5%, the sharpest increase since 2018. Most economists polled by Bloomberg predicted a hike to 20%. It’s the latest indication that Turkey’s new administration is prepared to move away from the unorthodox policies — including ultra-loose borrowing costs — that were championed by President Recep Tayyip Erdogan but caused foreign traders to flee the country’s bond and stock markets en masse. Source: Bloomberg
