Another Risk Off Market

August 20, 2015

Stocks are off in North America, Europe and Asia.  The Shanghai Composite slumped 3.4%, and markets in India, Korea, Hong Kong, Australia and Singapore all fell at least 1.0%, while the Japanese Nikkei lost 0.9%.  The German Dax is 2.2%, and the S&P shows a loss of 1.2% so far.

Ten-year sovereign debt yields are down 8 basis points in Britain, 3 bps in the United States, and 2 bps in Japan and Germany.

Comex gold jumped 1.4% to $1,150.02 per ounce, and oil ($40.80) is barely holding onto the $40 barrier.

The dollar is mostly softer, with losses of 0.6% against the euro, 0.3% relative to the yen, 0.3% versus the yen and kiwi, and 0.1% vis-a-vis the yuan.  The dollar is unchanged against the Aussie dollar and 0.1% firmer against the pound.

FOMC minutes reveal a committee moving closer to a first interest rate hike.  One member wanted to tighten in July.

U.S. existing home sales advanced by 2.0% in July, defying expectations of a decline.

The Philly Fed manufacturing index rose 2.6 points to a 2-month high of 8.3.

Four straight increases in the U.S. index of leading economic indicators was interrupted by a 0.2% drop in July.  The index of coincident economic indicators went up 0.2%, however, for a second straight time.

U.S. jobless insurance claims rose 4 basis points to 277K last week.

British retail sales edged up only 0.1% in July, less than forecast.  The CBI industrial trends index improved nine points to a 4-month high of -1.

German producer prices were unchanged in July from June and also from April.  The PPI fell 1.3% on year and has posted a 12-month decline between 1.3% and 1.5% since April.

Canadian wholesale turnover advanced 1.3% on month and 3.6% on year in July.

Swiss exports and imports fell 1.7% and 2.5% on month in July, resulting in a CHF 3.74 billion surplus.  Swedish non-adjusted unemployment of 6.5% last month was the lowest since end-2008.  Norwegian total GDP was unchanged between the final quarter of 2014 and the second quarter of 2015.

Mexican GDP climbed 0.5% in 2Q and 2.2% on year.

Copyright 2015, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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