MARKET SUMMARY WEEK ENDING 21 AUGUST 2015
24th August 2015
Stock Rout Spreads Through Europe After China Plunge. A wave of selling gripped global markets as the rout in all but the safest assets deepened. Chinese shares tumbled by the most since 2007, stocks in Germany headed for a bear market and commodities fell to a 16-year low. European Stock Selloff Intensifies as DAX Heads for Bear Market. The Stoxx Europe 600 Index lost 3.3 percent at 9:33 a.m. in London, deepening its plunge after its worst week in four years, all but two of its shares falling. Miners slumped 5.2 percent for the biggest drop among industry groups as commodities were set for their lowest levels since 1999.
Commodities in Review
Bullish Oil Bets Sink to 5-Year Low as Futures Flirt With $40. Hedge funds reduced their net-long position in West Texas Intermediate crude to a five-year low last week, days before prices fell below $40 for the first time since 2009.
Gold Bucks Commodity Rout as Turmoil Sends Investors to Havens. Gold was spared from the global market rout that’s sent commodities to the lowest level since 1999 as investors sought haven assets. The metal capped a 4.1 percent weekly advance on Friday, when prices rose to as much as $1,168.39, the highest level since July 7.
U.S. Index Futures Slide After Steepest Stock Slump Since 2011. Index futures signaled losses will cascade in the world’s biggest stock market after U.S. equities ended last week down the most in almost four years. Contracts on the Standard & Poor’s 500 Index due in September slid 1.9 percent to 1,933.75 at 9:09 a.m. in London, paring a drop of as much as 3.1 percent. Futures on the Nasdaq 100 Index fell 3.4 percent and those on the Dow Jones Industrial Average retreated 2.1 percent
FTSE 100 Index Nears 2013 Low on Tumbling Glencore, Oil Stocks. The FTSE 100 Index last week entered a correction - falling 10 percent or more since its high in April - and extended the decline today to fall 2.4 percent to 6039.83 as of 8:45 a.m. in London. The index is headed for a 10-day drop of more than 10 percent, its longest streak of losses in more than four years. Anglo American Plc, Glencore Plc, BHP Billiton Plc and Rio Tinto Group each dropped more than 4.4 percent, sending a gauge of European commodity shares to its lowest level since 2009.
Finding a Bright Side of Europe’s Equity Rout in Valuations. There wasn’t much to rejoice over in Europe’s stock market last week, as equities slumped the most in four years. Raymond James Asset Management International’s Bertil Aubrun sees a silver lining in valuations. The 6.5 percent slide in the Stoxx Europe 600 Index left equities cheaper than they’ve been since January. The gauge fell another 3 percent on Monday. Aubrun said improvement in economic figures coupled with central-bank support means shares are still compelling.
Asian central banks from India to South Korea said they’re ready to offset market volatility that has swept the region and sent stocks and currencies sharply lower. The comments came as all major Asian markets dropped on Monday. Much of the selling pressure is being blamed on China’s ongoing slowdown and its sudden move on Aug. 11 to change its exchange rate regime, triggering the yuan’s biggest loss in two decades.
Indian Stocks Tumble Most in Six Years With Rupee Amid Selloff. Indian equities plunged the most since 2009 and a gauge of option costs surged as the rout in emergingmarket assets accelerated amid a global selloff. Oil & Natural Gas Corp., the largest explorer, slumped 9 percent. Tata Motors Ltd., owner of Jaguar Land Rover, headed for its lowest price since September 2013. Axis Bank Ltd. and State Bank of India dragged down a gauge of lenders by the most in six years. The rupee weakened past 66 per dollar for the first time in two years. The S&P BSE Sensex slumped 5.6 percent to 25,846.03 at 2:16 p.m. in Mumbai, the most since July 2009.
The information set out herein has been obtained from various public sources and is sent to you by way of information only. Schreiber Associates International can accept no liability of any sort in relation thereto and readers should obtain their own verification of any statement before making any decision which may have any financial or other impact.
Neither the information nor the opinions herein constitute, or are they to be construed as, an offer or a solicitation of an offer to buy or sell investments.