Wall Street futures pointed to a third day of gains this morning, the last day of trading for the second quarter, as Brent fell towards $50 a bbl. SPY has moved this morning from +0.1% to +0.2% Initial U.S. jobless claims rose by 10,000 to 268,000 in late June and pace of layoffs nationwide remained extremely low.
Here is the current market situation from CNN Money
European markets are mixed. The CAC 40 is higher by 0.16%, while the FTSE 100 is leading the DAX lower. They are down 0.13% and 0.12% respectively.
BEIJING/SHANGHAI (Reuters) - China's central bank is willing to let the yuan fall to 6.8 per dollar in 2016 to support the economy, which would mean the currency matching last year's record decline of 4.5 percent, policy sources said.
(Reuters) - U.S. fund managers made no significant changes to their model global portfolio in June, a Reuters poll found on Thursday, even after Britain's vote to leave the European Union last week sent global financial markets into a frenzy.
NEW YORK/SAN FRANCISCO (Reuters) - Foreign exchange volatility and economic uncertainty after Britain's vote to leave the European Union have imperiled a projected profit rebound in the United States, where companies have been stuck in an earnings recession since last year.
New York (Reuters) - U.S. units of Deutsche Bank and Santander suffered the ignominy of failing U.S. stress tests yet again this year, less than a week after Britain's shocking vote to leave the European Union sent their investors running for cover.
HONG KONG (Reuters) - State-owned Postal Savings Bank of China (PSBC), the country's largest bank by number of branches, has filed for a Hong Kong initial public offering (IPO) seeking to raise as much as $10 billion, Thomson Reuters IFR reported on Thursday.
JOHANNESBURG (Reuters) - South Africa cleared Anheuser-Busch Inbev's $100 billion-plus deal to acquire SABMiller on Thursday, putting the world's largest brewer "on track" to complete the merger within the next six months.
MADRID (Reuters) - Spanish officials raided Google's Madrid offices on Thursday in a tax probe, authorities said, barely a month after the internet company had its headquarters in France searched on suspicion of tax evasion.
Despite all the exuberance over the Brexit bounce in US (and UK) equities, never minds bonds, FX, and credit being far less enthusiastic, Deutsche Bank is plunging once again this morning. Having failed The Fed's stress test for the second year running and been diagnosed by The IMF as the world's most systemically dangerous financial entity, the giant Germanbank is getting slammed down almost 4% today, back near record lows as its 'Lehman-esque' path to devastation continues.
This is far from over!!
And if DB goes...
Then who's next?
As we previously conclude, considering two of the three most "globally systemically important",
i.e., riskiest, banks just saw their stock price scrape all time lows
earlier this week, we wonder just how nervous behind their calm facades
are the executives at the ECB, the IMF, and the rest of the handful of
people who realize just close to the edge of collapse this world's most
riskiest bank (whose market cap is
Prior to the Brexit vote, George Soros was one of the notable names who came out to implore the voters to decide to remain in the EU. At that time, Soros took scaremongering to a new level by writing an op-ed titled "The Brexit crash will make all of you poorer - be warned." Following the referendum, Soros came back to write "the catastrophic scenario that many feared has materialized, making the disintegration of the EU practically irreversible."
In remarks made to the European Parliament in Brussels on Thursday, Soros made yet another round of dramatic statements. Expanding on comments made over the weekend about the "inevitable disintegration" of the EU, Soros said Britain's decision to leave the European Union has "unleashed" a crisis in financial markets similar to the global financial crisis of 2007 and 2008.
"This has been unfolding in slow motion, but Brexit will accelerate it. It is likely to ...
Until Boris Johnson's shocking announcement moments ago that he would not run for Tory leadership or the UK premiership, the key macro event overnight was a report out of Reuters that China's central bank is willing to let the yuan fall to 6.8 per dollar in 2016 to support the economy, which would mean the currency matching last year's record decline of 4.5 percent.
The report promptly sent the offshore yuan tumbling, sliding much as 0.72% to 6.7021 per dollar, the lowest since January 11, however it promptly recovered losses following significant PBOC intervention in the open market.
In a longer-term context, the swoon in the CNH matched the lows from January.
As Reuters adds, the yuan was already trading at its lowest level in more than five years, so the central bank will aim to ensure a gradual decline for fear of triggering the sort of capital outflows that shook the economy earlier this year and criticism from trading partners such as the United States, said government economists and advisers involved in regular policy discussions.
A surprise devaluation of the yuan last August sent global markets into a spin on worries the world's second-biggest economy was in worst shape than Beijing had let on, prompting massive capital outflows as investors sought safe havens overseas.
"The central bank is willing to see yuan depreciation, as long as depreciation expectations are under control," said a government economist, who requested anonymity due ...
Econintersect wants your comments,
data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.
Econintersect Live Market
Print this page or create a PDF file of this page
The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.
Take a look at what is going on inside of Econintersect.com