Asian stocks were mostly lower for the fifth consecutive day, with sentiment subdued ahead of the release of Fed minutes later today. The MSCI Asia Pacific fell 0.7%. The Nikkei, Topix and Hang Seng were all down, however the Jakarta Composite rose more than 1% setting it on track for its first gain after four days of big losses totalling -11%. Philippines' and Taiwan's markets were closed. Australian and NZ benchmarks rose. (Bloomberg)(FastFT)
Today: FOMC minutes. UK CBI output index. There are worries that today's Fed minutes could intensify the EM sell-off. (Reuters)
Investment banks are hiring again: "Banks including Nomura, Citigroup and Bank of America have started hiring dealmakers and traders in Europe in a sign that recruitment is picking up following a two-year cull that saw thousands of bankers lose their jobs." (Financial Times)
"A computer glitch at Goldman Sachs could cost the investment bank $100m or more after it inadvertently made a large number of erroneous options trades on Tuesday that disrupted trading across multiple US exchanges, market participants told the Financial Times." (Financial Times)
Indonesian state fund steps up stock buying after plunge: "Indonesia's biggest pension fund is stepping up purchases of Indonesian stocks, President Director Elvyn Masassya said after the Jakarta Composite index plunged 11 percent in four days." PT Jamsostek will raise its stock holdings to 25% from 22% of total assets. (Bloomberg)
German finance minister Wolfgang Schäuble said Greece will need a third bailout, bringing the politically toxic subject of financial support for Greece into Germany's election campaign yesterday. (Financial Times)
Ringgit too low, says minister ahead of GDP: Malaysia's planning minister said the ringgit, now at a three-year low, had weakened too much for an economy that's set to perform better in the coming months. Q2 GDP, released later today, is expected to have grown 4.7% according to the median Bloomberg survey results -- faster than Q1 but below the 5%-plus rates of most quarters since 2009. (Bloomberg)
Tepco shares fell as much as 13% on a report of 'serious' radiated water leak from Japan's Nuclear Regulation Authority. (Bloomberg)
Intern death leads to calls for culture shake-up: "Banks in the City of London are facing calls to overhaul the working culture for younger staff following the death of a 21-year-old intern at Bank of America." (Financial Times)
COMMENT AND CURIOS:
- Editorial: Emerging world can handle turmoil. (Financial Times)
- Pullback in little-known repo markets could affect other assets. (Financial Times)
- The big jump in Indian sovereign yields threatens PM's plan to cut the deficit. (Bloomberg)
- Some foreign companies operating in India are already feeling the effect of the lower rupee. (Wall Street Journal)
- Bitcoin virtual IPOs. In China. (Bloomberg)
OVERNIGHT MARKETS: DOWN
Asian markets
Nikkei 225 down -83.40 (-0.62%) at 13,313
Topix down -8.81 (-0.78%) at 1,116
Hang Seng down -245.36 (-1.12%) at 21,725
US markets
S&P 500 up +6.29 (+0.38%) at 1,652
DJIA down -7.75 (-0.05%) at 15,003
Nasdaq up +24.50 (+0.68%) at 3,614
European markets
Eurofirst 300 down -9.80 (-0.80%) at 1,215
FTSE100 down -12.27 (-0.19%) at 6,453
CAC 40 down -55.05 (-1.35%) at 4,029
Dax down -66.26 (-0.79%) at 8,300
Currencies
€/$ 1.34 (1.34)
$/¥ 97.29 (97.26)
£/$ 1.57 (1.57)
Commodities ($)
Brent Crude (ICE) down -0.32 at 109.83
Light Crude (Nymex) down -0.17 at 104.94
100 Oz Gold (Comex) down -0.60 at 1,373
Copper (Comex) unchanged 0.00 at 3.34
10-year government bond yields (%)
US 2.82%
UK 2.70%
Germany 1.85%
CDS (closing levels)
Markit iTraxx SovX Western Europe +0.5bps at 89.99bp
Markit iTraxx Europe -0.4bps at 102.68bp
Markit iTraxx Xover -2.17bps at 423.23bp
Markit CDX IG +1.12bps at 86.56bp
Sources: FT, Bloomberg, Markit
Edit this template.
