Thin Data Slate Leaves Markets To Their Worries

Good Morning Europe

Equity markets can’t seem to catch a break, with China credit- crunch worries moving to the forefront of investor concerns just as they were learning to live with the new regime at the Federal Reserve.

The People’s Bank of China released a statement over the weekend stating that it may fine-tune its policies, which has recently been code for policy loosening, but that wasn’t enough to stop the shares of Chinese companies listed in Hong Kong approaching two-year lows Monday with banks leading the way down.

Greece is also bubbling under again given the IMF’s threat to withdraw bailout funding unless a budget shortfall is plugged.

There’s little European data Monday to sweeten this rather bitter cocktail, with only Germany’s Ifo survey due.

Alpari U.K. is forecasting the FTSE 100 and CAC40 down five points apiece at the open, and the Dax down 15.

By David Cottle

What You May Have Missed From MoneyBeat:

Mainland Shares Hit Two-Year Low In Hong Kong: Chinese companies listed in Hong Kong are under pressure with banks leading the way down.

Rusal Shifts Gaze Back to Moscow Exchange: The first Russian company to list in Hong Kong never really hit its stride in the Asian share market, and so three years later it’s turning back to its home bourse.

Despite Warning Signs, IPOs Press Ahead: How has the taper-induced tumult affected the new issue market? So far, there are conflicting signals.

New Zealand Company Taps Investor Appetite for Dairy: Synlait Milk Ltd., which is majority owned by a unit of China’s Bright Food Group Co., plans to raise around 120 million New Zealand dollars (US$93 million) from an initial public offering to help fund an expansion in production.

iSelect Makes Muted Debut in Australia after Microsoft Exits: Online comparison service iSelect Ltd., one of Australia’s largest initial public offerings so far this year, tumbled on its debut on the Australian Securities Exchange.

State Street Temporarily Stops Cash Redemptions For Muni-Bond ETFs: A flurry of selling in municipal bond ETFs this week prompted one of the market’s largest exchange-traded fund sponsors to temporarily stop redeeming shares for cash.

From The Wall Street Journal:

U.K. and China Reach Currency Deal: The two countries have struck a three-year agreement to swap currencies when needed, the latest in a series of bilateral swap deals for Beijing.

Slow-Mo U.S. Recovery Searches for Second Gear: Many economists predict that 2014 will be the best year from growth since 2005.

UBS to Shut India Wealth-Management Unit: Swiss bank UBS AG will become the second global bank to pull out of wealth management in India this year, and will also wind down its commercial banking operations there.

China Signals More Inaction on Credit: China’s government signaled little respite from the cash crunch that has afflicted its financial system since the beginning of June, suggesting tight conditions could continue to strain markets in the week ahead.

Japan to Create Task Force to Tackle Money Laundering: Japan is responding to international concerns over its policing of money laundering, as security lapses at Japanese banks add to what some international experts see as the country’s poor track record on the issue.


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