Sat, 22nd October 2016

Anirudh Sethi Report


Archives of “Global Indices” Category

European Indices closed Dull !Weekly Gains are Super

European stock market close 21 October 2016

  • FTSE -0.2% day +0.02% week
  • Cac -0.1% day +1.43% wk
  • Dax -0.1% day +1.23% wk
  • Ibex +0.4% day +3.72% wk
  • FTSE Mib +0.1% day +3.42% wk

European bonds

  • Italy 1.37% +1bp
  • Spain 1.12% +1bp
  • Portugal 3.19% -2bp
  • Germany 0.007% flat
  • Greece 8.44% flat

Over in the US, stocks are looking to reverse earlier losses with the S&P on it’s highs but still in the red by 2 ticks at 2139. The Dow is -44 at 18117 and Nasdaq is +15 at 5266.

European Indices closed Mixed.Spain Ibex zoomed +1.2%

European stock market close 20 October 2016

FTSE -0.1%
Cac +0.4%
Dax +0.5%
Ibex +1.2%
FTSE Mib +0.4%
European bonds

Italy 1.37% -1bp
Spain 1.11% -1bp
Portugal 3.21% +2bp
Germany 0.004% -3bp
Greece 8.44% flat
Europe’s bond markets were obviously hanging out for some taper talk as they’ve been up and down today. German 10’s were as high as 0.070% but have since fallen back and had posted a -0.001 low.

Shanghai B-Shares Unexpectedly Crash Over 6% In Last 90 Minutes Of Trading

In recent days, China has been hit with a tripple whammy of rising inflation, reducing the likelihood of more monetary easing; a jump in the dollar which has pressured the Yuan sending it to its lowest fixing since 2010 at 6.7379, while the USDCNH rising above 6.75 in early trading; and rising interest rates which have resulted in another spike in revulsion to EM stocks. Perhaps as a result of this perfect storm of catalysts, overnight China’s foreign currency shares, the Shanghi B-share index, plunged the most since January in late trading, and as Bloomberg notes, “sending traders scrambling for reasons to explain the sudden volatility in a largely moribund market.”

The Shanghai B-share index of dollar-denominated stocks suddenly crashed as much as 6.7%, the biggest drop since January 11, with virtually all the losses coming in the last 90 minutes of trading, before closing down 6.2%.

Kama Co. and Shanghai Lingyun Industries Development Co. were among companies falling by the 10% limit. Predictably, a measure of the 10-day volatility on the 52-member index jumped to its highest level in six months, after falling in September to its lowest in at least a decade.

As Bloomberg summarizes, B-share markets, where foreign institutions and Chinese individuals are allowed to trade, were set up in 1992 to give local companies a way to raise funds from global investors banned from buying securities denominated in yuan. Interest in B shares has waned as the government allowed qualified overseas investors to access the larger, more liquid A-share market and eased limits on foreign exchange. Monday’s drop came as the yuan extended a slide against the dollar to a six-year low.