Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

NYSE Breaks, China Bursts: What's Going On?


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

Today at T3 Live

Today, T3 Live announced it will be hold its first annual Finance Festival!

The event will be held November 6-8 at the Mayfair Hotel & Spa in Coconut Grove, Florida. We'll kick off Friday evening with a VIP dinner followed by a weekend full of insightful keynote discussions, great food, and what promises to be the party of the year!

We've got some big names joining us, including T3 Live's Scott Redler and Evan Lazarus.

Click to Learn more about T3 Live's Finance Festival

The market action was driven by several major news stories today.

China's Bubble Bust

Chinese markets have been hemorrhaging over the past three weeks and didn't stop today.

The Shanghai Composite plummeted 5.9% overnight, and the Hang Seng Index fell 5.8%.

The drops spurred the Chinese government to suspect trading in over 1,300 stocks valued in excess of $1 trillion.

China's securities regulators also banned stock sales by major shareholders for six months in a blatant attempt to control the supply and demand balance of Chinese shares.

The nasty action in China spread over to US stocks, and the S&P 500 fell 1.7% to 2046.69. In another sign of serious fear, the VIX rose 21.9% to $19.62 as traders bid up for protection in the options market.

FOMC Releases Fed Minutes for June

During its discussions in June, Reserve officials stated that the economy was moving toward conditions that would support an interest rate increase with labor market slack expected to be largely eliminated by year-end. Most of the committee was optimistic about the potential boost to consumer spending, and they expecting a gradual rise in inflation toward its 2% goal.

However, the Fed is paying close attention to the messes in Greece and China, which could ultimately impact rate policy.

The Release of the Fed Minutes had little effect on equity markets, though Treasury yields dropped.

New York Stock Exchange Suspends Trading

Trading was suspended at the New York Stock Exchange around 11:32 a.m. ET this morning after it observed glitches in its system affecting stocks. The exchange announced that the issue was an internal technical issue and not the result of a security breach. Nonetheless, cybersecurity stocks rallied off their lows on the news.

However, trading in NYSE stocks on other venues continued fine.

Trading on the exchange resumed around 3:10 p.m. ET.

Greece Given Deadlines By Economy Commissioner

Today, Greece requested a three-year loan from the eurozone's bailout fund, submitting a formal request. In order to obtain the funding, the government must be willing to make major changes to its tax and pension systems, on which the government will release details tomorrow. European officials in Brussels stated that either there will be deal on Sunday or Greece will default on Monday.

EU Economy Commissioner,Pierre Moscovici stated that the commission doesn't want a Grexit and is doing everything it can to avoid it.

European markets seemed relatively optimistic regarding the outcome. Major indices rallied with most finishing over 0.5%. Bond yields were mixed while the euro rallied against major currencies.

Thursday's Financial Outlook

US economic data for tomorrow will include initial and continuing jobless claims, Bloomberg Consumer Comfort, and EIA natural gas storage change numbers..

Overseas data includes Germany's trade balance, and the Bank of England's rate decision and asset purchase target

PepsiCo (PEP), and Walgreens Boot Alliance (WBA) will report earnings before the open tomorrow. After the close, PriceSmart (PSMT) will release its earnings.
No positions in stocks mentioned.
Featured Videos