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| The data was decent, good sentiment readings from Europe - but despite a solid start on Monday, the mood was ruined today by China's devaluation. |
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| EURUSD continued creepig higher, although gave away some of the gains towards the end of the session. |
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| After S&P500's promising start on Monday, all gains were wiped off today. |
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| DAX rally on Monday was weak, and Tuesday's sell-off notable. |
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| Weak oil- and stock prices pushed yields down |
EUROPE
We the People of
Europe –
Project
Syndicate
There
are striking parallels between America’s founding years and the European
Union’s ongoing political and economic crisis. In fact, the creation of the US
Constitution and the birth of the American people offer reasons to hope that
some of the most difficult issues facing Europe can one day be resolved.
Sovereign debt
repayments: Evidence on seniority – voxeu
Greece
is the first developed country to default on the IMF. But it continues to service
its debt owed to private bondholders. How does this compare to historical
experience? This column presents new evidence on seniority in sovereign debt
markets. Despite the lack of a sovereign insolvency procedure, there is a
clear-cut pecking order of sovereign debt repayments, which holds across
countries and over time. Greece is an outlier case, and the Eurozone rescue
loans face an elevated risk of arrears and haircuts in the future.
GREECE
Greece,
lenders clinch bailout deal after marathon talks – Reuters
Greece
says it has agreed outline of debt deal – FT
Greece
reaches technical agreement with creditors – Open
Europe
UNITED STATES
US
data and comments by the Fed still hint at a rate hike coming in September. But
markets are now less searching for an answer to the question “How much will the
Fed hike?” over the next one to two years?
ASIA
Analysts
sharply cut Japan growth forecasts, cloud BOJ optimism – Reuters
CHINA DEVALUES
Yuan
Devaluation Ripples Across Asia as Currencies, Metals Drop – BB
China
devalues yuan after poor economic data – Reuters
China
weakens renminbi amid global reserve currency push – FT
Q&A:
China’s currency devaluation – FT
5
Things to Know About China’s Currency Devaluation – WSJ
China
Enters Currency War - Devalues Yuan By Most On Record – ZH
What
Does China’s Surprise Devaluation Mean for Yuan Globalization? – WSJ
What
China’s surprise currency devaluation means – WaPo
REGULARS
A Good Day to Buy (and
Maybe Sell, Too)
Global Stocks Fall as China Acts
Seasonals Suggest a Rally In the
Next Two Weeks
Equities and bond yields
up * EUR/CHF at its highest readings since February * ZEW expectations set to
rise * Lockhart sees the point of liftoff close. We agree * Finally some NOK
and SEK strength
The unexpected
devaluation of China's currency by the Peoples' Bank of China has triggered the
biggest one-day drop in the yuan since 1994.
China Surprises, Mini-Devaluation,
USD Mostly Firmer
Yuan down and Google
shares up after important (independent) decisions that were made yesterday.
While the prices of many commodities continue to depreciate, there are
exceptions. Yesterday we heard about the rising prices of eggs, today we have a
look at pork bellies.
Greece said to have reached deal
with creditors on third bailout * BBC: Government plans to restrict EU
migrants’ access to benefits could result in young Britons also losing their
benefits * European Commission to disburse €2.4bn to help countries deal with
inflow of non-EU migrants
Google becomes Alphabet —
Immigration investment — EU Moon City?
China's Historic Devaluation Sends
Equity Futures, Oil, Bond Yields Sliding, Gold Spikes
The USD was on the defensive late
yesterday after Fed speakers failed to offer anything new, but then a shock
yuan devaluation by China overnight saw the USD recovering and Asian
currencies, ex-JPY, sharply weaker.
The People's Bank of
China has cut the value of the yuan in an effort to defend a flagging export
sector and create a more market-driven currency. The move is widely seen as
part of an effort to secure a "global reserve currency" future for
the yuan.
FINNISH
Tämän
vuoksi Kiina devalvoi * Fedin Lockhart painotti jälleen keskuspankin lähestyvän
koronnostoa * Korot nousivat eilen * Venäjän talouden alamäki jyrkkeni toisella
neljänneksellä