Chinese stocks sank to a four-year low, pulling most other Asian markets lower as worries grew about the country's tight liquidity. The Nikkei was off 1.7% and the MSCI Asia Pacific fell 1.2% and copper reached a three-year low. (Reuters)(Bloomberg)
China's seven-day repo rate rose 68 basis points today to 8%, and the overnight rate fell 47bps to 6%, according to a fixing by the National Interbank Funding Center. (Bloomberg)
Fed's Fisher fights 'feral hogs': Dallas Fed president Richard Fisher told the FT the Fed had anticipated a lively market reaction to last week's comments on QE tapering. But Fisher, an FOMC voting member, warned that markets should not think the Fed would end up propping up the economy indefinitely. " I do believe that big money does organise itself somewhat like feral hogs. If they detect a weakness or a bad scent, they'll go after it." (Financial Times)
Parts of UK and US risk becoming 'uninsurable' as oceans warm: Global insurance industry trade body the Geneva Association issued a rare warning that the speed at which the oceans are warming is threatening their ability to sell affordable policies in a growing number of places around the world, including parts of the UK and Florida. (Financial Times)
Sumitomo Life weighing Negara stake: "Sumitomo Life Insurance Co. is among companies preparing to bid for a stake in the life insurance unit of PT Bank Negara Indonesia (BBNI), according to two people with knowledge of the matter." (Bloomberg)
Copper hit a three-year low and other industrial metals tumbled as traders feared that China's liquidity squeeze could dent demand, as the country accounts for 40% or more of the global market for each metal. (Financial Times)
The financial crisis has fuelled a huge expansion of organised crime in Europe with 3,600 criminal syndicates now active across the continent, profiting even from such prosaic products as household detergents, the head of Europol has warned. (Financial Times)
The CFTC plans to approve the a civil lawsuit against Jon Corzine over the collapse of MF Global as soon as this week, according to law enforcement officials with knowledge of the case. (NYT Dealbook)
Convertible bonds are back in fashion. This month will be the most active for issuance in two years, triggered by speculation about a Fed easing exit. (Financial Times)
Sinopec pays $1.52bn for Angolan oilfield stake: The Chinese energy group and Asia's largest refiner, has agreed to pay $1.52bn for a share in an Angolan oilfield owned by Marathon Oil. (Financial Times)
COMMENT AND CURIOS:
- Bond market exit becoming stampede? (NYT Dealbook)
- Where the bankers are: Singapore. (Bloomberg)
- A woman, not Churchill, for £5 note. (Financial Times)
OVERNIGHT MARKETS: DOWN
Asian markets
Nikkei 225 down -225.38 (-1.73%) at 12,837
Topix down -20.47 (-1.88%) at 1,069
Hang Seng down -280.93 (-1.42%) at 19,533
US markets
S&P 500 down -19.34 (-1.21%) at 1,573
DJIA down -139.84 (-0.94%) at 14,660
Nasdaq down -36.49 (-1.09%) at 3,321
European markets
Eurofirst 300 down -18.49 (-1.63%) at 1,114
FTSE100 down -87.07 (-1.42%) at 6,029
CAC 40 down -62.41 (-1.71%) at 3,596
Dax down -96.79 (-1.24%) at 7,692
Currencies
€/$ 1.31 (1.31)
$/¥ 97.37 (97.72)
£/$ 1.54 (1.54)
Commodities ($)
Brent Crude (ICE) down -0.40 at 100.76
Light Crude (Nymex) down -0.52 at 94.66
100 Oz Gold (Comex) up +1.70 at 1,279
Copper (Comex) unchanged 0.00 at 3.03
10-year government bond yields (%)
US 2.54%
UK 2.55%
Germany 1.82%
CDS (closing levels)
Markit iTraxx SovX Western Europe +5.38bps at 97.86bp
Markit iTraxx Europe +8.41bps at 132.22bp
Markit iTraxx Xover +28.22bps at 528.53bp
Markit CDX IG +3.8bps at 97.59bp
Sources: FT, Bloomberg, Markit
