Risk Assets Continue to Decline
Today's financial recap and tomorrow's financial outlook.
The major Asian and European indices were also in the red. Greece was a notable decliner after MSCI (NASDAQ:MSCI) cut the Mediterranean nation from developed country to emerging-market status due to a failure to meet criteria regarding securities borrowing and lending facilities, short selling, and transferability.
Elsewhere in international news, influential asset manager PIMCO announced this morning that there is a 60% chance of a global recession in the next three to five years.
Over in commodities, crude inventories increased by 2.5 million barrels last week, a drastic change from the 6.7 million barrel decrease during the week prior. Crude finished the day up 0.7% to just of $96.
Gold reversed its three-day downward trend, finishing up 1% on the day; bonds sold off as US Treasury yields continued their ascent.
Financial stocks were fairly weak on the day, with the Royal Bank of Scotland Group (NYSE:RBS) dropping more than 3% after CEO Stephen Hester announced that he will be stepping down from his position later this year. Likewise, yoga apparel maker Lululemon Athletica Inc (NASDAQ:LULU) again fell sharply on fallout from its recent announcement that its CEO would be stepping down.
Tomorrow's Financial Outlook
The weekly jobless claims report will be released tomorrow morning at 8:30 a.m. EDT. Initial claims are expected to come in at 350,000.
US retail sales will be released at 8:30 a.m. EDT tomorrow. The consensus month-over-month increase is 0.5%. Last month, retail sales came in at just 0.1%. US import and export prices will also be released tomorrow at 8:30 a.m. EDT. Exports are expected to have risen 0.1% and imports are expected to be flat.
The minutes from the latest Bank of Japan meeting will be released tomorrow night at 7:50 p.m. EDT.
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