I think that in for the next six to nine months volatility will increase for China’s currency and that the possibility of another yuan devaluation needs to be taken seriously as a market risk
Financial markets in the United States and Europe fell modestly as traders wait to see what happens next after Turkish fighters shot down a Russian war plane near the Turkish-Syrian border.
What’s that you say—you didn’t know there is a debate over earnings for the calendar third quarter? Earnings per share for the stocks in the Standard & Poor’s 500 are projected by Wall Street analysts to fall by 6.9% in the quarter. There’s a good possibility, though, that the projected decline in S&P 500 earnings overstates the weakness in the quarter. The index over-weights the energy sector
The cause of the rally is pretty simple: With the weaker than expected jobs numbers for September the market has adopted the view that the Federal Reserve won’t raise interest rates until March 2016 at the earliest. The possibility of an October interest rate increase is now almost completely off the table as far as the market is concerned
The People’s Bank of China, the European Central Bank, and the Bank of Japan just can’t get their economies growing fast enough to produce a sustained recovery that would let them step back from using the printing press to stimulate the economy. Only the U.S. Federal Reserve might have built strong enough growth so that it can start to reduce its intervention in the economy—but that still remains an open question.
A big week for China news hasn’t started off well. And that says, “Watch out!” when U.S. stocks resume trading on Tuesday, September 8. Today’s news showed that China’s huge foreign exchange reserves got a bit less huge in August. China’s foreign-exchange reserves fell by a record $94 billion last month
It would be “normal” for stocks to bounce on Monday as at least some bargain hunters crawled out of the wreckage and decided to buy Apple (AAPL) 6.1% lower on Friday at $105.76, down 14.6% from its July 20 high of $132.07 or Netflix (NFLX), down 7.6% on Friday and now down 17.1% as of Friday’s close from the August 6 high of $126.50. If there’s no bounce, we know that markets are a deeply panicky
