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T3's Take 3: Markets Weaken as Fed Appears on the Horizon


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

Today on T3 Live

T3 Live cordially invites you to our first annual Finance Festival, scheduled for November 6-8 in sunny Miami, Florida.

Since we announced the event on July 8, we've added some very big names to the agenda, including:

-David Kotok, Founder and Chief Investment Officer of Cumberland Advisors
-David Rosenberg, Chief Economist of Gluskin Sheff
-Ivan Zinn, Chief Investment Officer of Atalaya Capital Management

Our early bird pricing special expires tomorrow, so sign up today for the best possible value:

Read about our expanded lineup here.

Asia's Powers Lag

Shares in Asia were weak as disappointing data from China pulled down Asian stocks. Factory output data was weaker-than-expected, and Bloomberg's China GDP Tracker showed estimated growth of 6.6% in July. The government has targeted 7% growth.

The market was also hurt by the China Securities Regulatory Commission's announceement that it was punishing two investors for manipulating certain stocks higher.

The Shanghai Composite fell 2.7% According to the Wall Street Journal, over 1400 stocks hitthe  10% daily decline limit set by the Chinese government.

Over in Japan, the Nikkei closed down 1.6% from the drop in China and weakness in telecoms. The sell-off occurred after Prime Minister Abe stated that he will release a plan to decrease phone bills. Japanese telecom heavyweights such as Docomo, and Softbank fell as much as 8%. 

World Equity Markets

Hong Kong's Hang Seng managed to finish up 0.3%, while the Taiwanese TAIEX was flat.

European equities went down with China.

All major indices finished down except for the German DAX which managed to rally 0.1%. The US Fed policy meeting later this week also weighed down European stocks as traders remain extremely cautious.

American equities were also down on China and apprehension regarding the Fed meeting this week. The S&P 500 closed down 0.4% following a slightly positive start. The NASDAQ dropped 0.3%, even with a 1.0% gain in Apple (AAPL).

The  US dollar fell slightly against most major world currencies, but gained a little against the euro.

Another 50% Descent for Alibaba? 

About a year ago, Alibaba (BABA) held the world's largest IPO, jumping up 75% from its $68 IPO price within 2 months. Since that peak, the stock has tumbled below the IP price. Over the weekend, Barron`s published a report stating that the company`s shares may drop another 50%.

Barron's believes the weakness in AliBaba (BABA) can't entirely be attributed to China. It cited valuation and a coming IPO lockup as reasons for caution.

Additionally, intense competition from similar companies in China like (JD) or Youku Tudou (YOKU) could take a toll.

Alibaba shares closed down 3.1%
Tuesday's Financial Outlook

US economic data for tomorrow will include retail sales, empire manufacturing, industrial production, capacity utilization, and business inventories. 

Overseas economic data will feature British CPI, German ZEW economic sentiment survey and euro-zone employment survey. 

United Natural Foods (UNFI) will announce its earnings after the close tomorrow.
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