Daily Note – Hold onto your seats!

article-0-0EE24E2200000578-23_468x433Summary

  • Equity sell-off continues
  • Eurozone: So why is the Euro so strong?
  • Eurozone: German Manufacturing sentiment improves
  • The Week Ahead: All eyes on the Federal Reserve

Good morning, or rather morning and hold onto your seats!

The selloffs in equity markets continued overnight in Asia, following the collapse in Europe and US markets on Friday. In light of the equity rout, China’s State Council issued new rules to allow pension funds to invest up to 30% of their funds into equity–type assets. However, the SHCOMP and SZCOMP tumbled by 8.5% and 7.6%, respectively last night. The Topix in Japan also fell by 5.0% while SPX futures were down 2.5% during the Asia session.

Global market developments since the release of the July FOMC (last Wednesday) minutes suggest that the probability of a later lift-off has risen profoundly. The Fed would be mad to raise rates in these markets.

Download a FULL PDF version of the Daily Note:

GlobalMacro360 Daliy Note 24th August 2015

Disclaimer

The statements, opinions and analyses presented in the articles, newsletters, and other materials appearing on this website are provided as general information and for educational purposes. Opinions, estimates and probabilities expressed herein constitute the judgment of the author as of the date indicated and are subject to change without notice. Nothing contained in this website is intended to be, nor shall it be construed as, investment advice, nor is it to be relied upon in making any investment or other decision. Prior to making any investment decision, you are advised to consult with your broker, investment advisor or other appropriate tax or financial professional to determine the suitability of any investment. David McWilliams shall not be responsible or have any liability for investment decisions based upon, or the results obtained from, the information provided.



Categories: Daily Note