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Asian Equity Weakness Migrates to the US and Europe


Today's financial recap and tomorrow's financial outlook.

Overseas markets in Asia and Europe were lower overnight. Particularly notable was the weakness in the Indian, Thai, and Indonesian markets. The Indian rupee hit a new low against the dollar at 63.13 rupees per dollar while the Reserve Bank of India attempts to stem the outflows from its country by raising the discount rate and limiting foreign capital investment. The Indian SENSEX (INDEXBOM:SENSEX) was down 1.56% in trading overnight. European markets all finished in the red, and the Japanese Nikkei (INDEXNIKKEI:NI225) finished up 0.79%.

US equities opened the day lower, then had a quick bounce, but finished on the lows of the day following a very negative performance throughout the day. The number of declining issues on the NYSE outnumbered the advancing issues by a 4:1 margin, the fifth straight day of negative internal readings. The energy and financial sectors were the worst performing sectors of the S&P 500 (INDEXSP:.INX), both falling by more than 1%. Tech, particularly led by Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG), was in positive territory for much of the day, but gave up all of its gains in the closing moments.

Treasuries joined in on the sell-off today, following emerging market stocks, which also suffered. The 10-year Treasury yield rose by 5 basis points to 2.88% after reaching a peak of 2.89% intraday. Crude oil fell by 0.56%.

Saks (NYSE:SKS) fell by 0.3% following its worse-than-expected earnings. The company reported EPS of -$0.10, worse than the -$0.08 consensus; revenues were well below the consensus at $707.8 million.

Tomorrow's Financial Outlook

The regional Chicago manufacturing survey is the lone economic report for tomorrow, and it is set to be released at 8:30 a.m. ET. The consensus estimate is for no change from last month, which was up from -0.13 the previous month. Earnings reports are due out come from retailers JC Penney (NYSE:JCP), Barnes & Noble (NYSE:BKS), Dick's Sporting Goods (NYSE:DKS), Best Buy (NYSE:BBY), and Home Depot (NYSE:HD).

Overseas economic data is light with only the Reserve Bank of Australia releasing minutes from its August monetary policy meeting.

Twitter: @Minyanville

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