Daily Financial Markets Chart Wrap

Highlights:

  • The driver of today’s market price changes seemed to be the confirmation of further weakness out of China
  • The Chinese Flash PMI was down three tenths to 47, which is the lowest reading since early 2009
  • US stocks finished down again on the day (down 20bps), but the real story was the weakness out of Asia and especially out of Asian EMs
  • All 10 economic sectors were in the red for both Asian DM and EMs with five out of ten EM sectors down at least 3%
  • This action will make for an interesting day tomorrow as Japan opens after being closed for the past two days
  • Back to DM stocks, the leadership was another mix between non-cyclicals and cyclicals
  • In the Americas Financials (+.06%) and Utilities (+.02%) were the only green sectors followed by Staples (-.1%) with Materials and Energy the big laggards (-1.9% and -2.5%)
  • Among individual stocks VW was given a bit of a reprieve as it picked a much needed 7.4%, but Bank Monti dei Paschi is back in the spotlight with a -8% move
  • Brazilian stocks rounded out the entire top 10 worst performers in EM Americas
  • From a country perspective, it was Europe in the lead with the US in the middle of the pack and Ausi at the bottom
  • In EM, all but two countries were red with Greece (-4.9%) and Brazil (-5.7%) leading the charge lower
  • China was down 2.8%
  • Despite the pretty weak day for stocks rates were fairly muted with no big moves one way or the other save the Ausi 10 dropping 7bps in sympathy with stocks there
  • The USD was stronger yet again adding another 27bps on pound weakness
  • WTI was down 2.4% and copper was down modestly as it closes in on its cycle lows
  • Lumber was a big mover, down 2.7%
  • DM and EM Knowledge Leaders outperformed again today by 53bps and 14bps, respectively
  • They have outperformed by 56.7% and 96.9%, respectively, over the last decade

Gavekal Capital Daily Financial Markets Chart Wrap

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