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T3's Take 3: China Slams Higher, Oil Bounces, and Greece Is Back


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

Today at T3 Live

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

The event will be held November 6-8 at the Mayfair Hotel & Spa in Coconut Grove, Florida, just minutes from Miami beach.

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, Josh Brown, and Todd Harrison.

Click to Learn more about T3 Live's Finance Festival

US Markets Rally

The S&P 500 rallied 1.3% in early trading, but gave back most of its gains by the afternoon, with the index breaking its 200 day moving average for the third time this week.

The S&P and Dow finished up just 0.2%, while the Russell 2000 outperformed with a 0.4% gain.

Market leader Apple (AAPL) was up 1.2% at one point but reversed quickly and finished down 2.0%.

Oil futures were up more 2.1% today, rebounding from three-month lows.

Traders were encouraged by the rebound in Chinese equity prices. Additionally, there is growing uncertainty surrounding a possible nuclear deal with Iran which would increase global oil supplies.

China Roars Back

Chinese markets had their biggest rally in 6 years last night. The Shanghai Composite surged 5.8% after posting losses for eight of the past 10 trading days.

However, the index is still down about a third over the last month. Some of the shares that were halted yesterday resumed trading today, with many rising over 10%. However, about of all stocks on the Shanghai and Shenzhen exchanges remain halted. Hong Kong's Hang Seng Index saw its biggest single day gain in three months, closing up 3.7%.

Chinese regulators have increased scrutiny on short selling and have banned large shareholders from engaging in normal stock sales.

The state-run Xinhua News Agency reported that Chinese police had visited its exchange comission to investigate "malicious short selling."

Greece Submits Its Proposal

Eurozone finance ministers are slated to review Greece's reform plans over the weekend. A number of banks are saying that Greece is more likely to leave the euro than stay due to skepticism over Tsipras' ability to deliver tough reforms.

As Greek banks remain closed, Greeks fear that a banking collapse will occur preventing them from withdrawing their funds. Reports indicate that many Greeks are turning towards buying tangible products such as Apple (AAPL) iPads, and luxury watches in the case Greece leaves the euro.

Bloomberg reported that Germany's finance minister, Wolfgang Schaeuble jokingly proposed "we could take Puerto Rico into the euro zone if the US were willing to take Greece into the dollar union" to US counterpart, Jack Lew.

The IMF expects the world economy to grow by 3.3% rather than the 3.5% it forecasted in April. Greece and China were singled out as potential risks. The US was also attributed to the downgrade. The IMF's US economic growth forecast was revised down to 2.5% for 2015, compared to 3.1% April. The IMF reiterated its recommendation that the Fed should hold off from raising rates until the first half of next year. 

Friday's Financial Outlook

US economic data for tomorrow will include wholesale inventories and trade sales, and the Baker Hughes Rig Count. The Chair of the Federal Reserve, Janet Yellen, will be speaking in Cleveland.

International data will consist of Britain's trade balance, and Canada's unemployment report.

No major earnings are scheduled for tomorrow.
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