Beyond today’s big price drop: the market is looking more and more anxious
Dig down a level and you’ll find plenty of signs that this market is profoundly nervous. There’s a danger that something relatively minor will set off a correction
Dig down a level and you’ll find plenty of signs that this market is profoundly nervous. There’s a danger that something relatively minor will set off a correction
So much for calm. Today, August 18, volatility returned with a vengeance led by a plunge in China’s mainland stock markets. The Shanghai Composite Index dropped 6.15% overnight.
On a day when the yuan showed none of its recent volatility, Morgan Stanley is out with a report warning investors and traders not to forget about currency volatility outside China.
On Monday markets rallied as traders and investors focused on the positive aspects of the move by the People’s Bank to devalue the yuan. Today they’re looking at the negatives in the move.
I think we’re looking at a period where whatever short-term volatility the market might present is played out against a background of a rising dollar, falling commodity prices, and lower prices for non-dollar assets, especially in emerging markets
Greek Prime Minister Alexis Tsipras is rushing back to Brussels on Wednesday to try to rescue a deal that that seemed today less likely than yesterday. And German Chancellor Angela Merkel is facing growing opposition to sending more money to Athens from within her own party.
Today the European Central Bank extended enough emergency liquidity assistance to Greece to get the country’s banks through today and Monday. The governors of the European Central Bank are scheduled to talk again on Monday to see if the bank will raise the cap again or decide that Greek banks are insolvent and revoke their lifeline