In a strategy to open Chinese markets to the international investors, China scrapped the rule that limits international funds to purchase Chinese stocks and bonds. The State Administration of Foreign Exchange said today that it has removed the 300 billion USD cap on international purchases of the assets. This is a significant step in giving depth to the stock and bond market so it can really compete on a global stage. Meanwhile, reports are stating that China has already agreed to 80% of demands for a trade deal, but the final 20% of US demands are seen by Beijing as an infringement on its sovereignty and impossible to accept.
Some economic data was released today with August exports falling 1% from a year earlier, the biggest fall since June this year. This comes on the back of a decent last month when the figure surprisingly jumped 3.3%. As for this month, analysts expected a 2.0% rise according to a Reuters poll.
The major Asian stock markets had a mixed day today:
The major Asian currency markets had a mixed day today:
Some economic news from last night:
Some economic news from today:
The UK Parliament officially recessed today until October 14th, leaving only around two weeks until the official “Brexit” cut-off date. The MPs were told to leave but it wasn’t without some protests, with a lot of MPs holding a blank sheet with the word “Silenced.” There were also some less aggressive singing by some Scottish MPs as they now enter their five week break. Jeremy Corbyn stressed that he wants an election and does not want to inflict the disaster of a no-deal on to the community, effecting jobs, services and rights.
The UK house speaker John Bercow, who is a funny character in his own right, announced he will be stepping down from his role on October 31st after 10 years. He expressed criticism at the suspension of Parliament, citing, “It is not standard. It’s one of the longest for decades and it represents — not just in the minds of many colleagues, but huge numbers of people outside — an act of executive fiat.”
China has criticized Germany for allowing the German Foreign Minister to meet with Hong Kong activist Joshua Wong. China called the meeting “disrespectful,” as Wong urged countries to stand by the protestors. “It is extremely wrong for the German media and politicians to attempt to tap into the anti-China separatist wave,” said Chinese Foreign Ministry spokeswoman Hua Chunying. “It is disrespectful of China’s sovereignty and an interference in China’s internal affairs.”
The major Europe stock markets had a green day today:
The major Europe currency markets had a mixed day today:
Some economic news from Europe today:
US national security advisor John Bolton has stepped down from his position. In an online statement, the president said, “I informed John Bolton last night that his services are no longer needed at the White House. I disagreed strongly with many of his suggestions, as did others in the administration.” In an interview with NBC on Tuesday, Bolton claimed he resigned this morning after sleeping on the decision. Once called a “war fanatic” by North Korea’s foreign ministry, Bolton has harshly criticized Iran and often encouraged the US to act when potential threats arose.
Nearly a thousand employees at Amazon’s headquarters in Seattle, Washington, are planning a walk out at the end of the month to protest climate change. The group called “Amazon Employees For Climate Justice” plans to vacate the headquarters on September 20 to prompt the international company to go to greater lengths to protect the environment. “Amazon employees receive an allotment of paid time off every year, and they can use this time as they wish,” a spokesperson for Amazon commented.
In more Amazon news, the company announced this Tuesday plans to begin offering Prime two-day shipping to Brazil. In an attempt to cash in on one of Latin America’s largest economies, the company will begin offering a restricted version of Prime to certain regions. Numerous Brazilian retail stocks declined after the announcement was made.
The Brazil, Russia, India, China and South Africa (BRICS) summit is poised to be held in Brazil November 13-14, 2019. Chinese President Xi confirmed that he will personally attend the event. “China recognizes in Brazil a key regional partner,” Brazilian Vice President Hamilton Mourao stated. The two countries have increased their alliance amid the ongoing US-China trade war. President Jair Bolsonaro will likely visit China in October after he recovers from surgery.
US Market Closings:
Canada Market Closings:
Brazil Market Closing:
Oil continued to move higher, even with negative economic news from China and the US markets moving down today. Yesterday’s news regarding Saudi’s new energy minister cutting production is helping to push up the price. Later, Trump’s administration announced the firing of John Bolton who was pushing for a war with Iran, which helped to push the market price down.
The oil markets had a mixed day today:
The above data was collected around 15:30 EST on Tuesday.
Japan -0.23%(+3bp), US 2’s 1.64% (+6bps), US 10’s 1.69%(+6bps), US 30’s 2.16%(+6bps), Bunds -0.54% (+4bp), France -0.24% (+4bp), Italy 1.02% (+7bp), Turkey 15.37% (+20bp), Greece 1.66% (+6bp), Portugal 0.28% (+3bp), Spain 0.27% (+4bp) and UK Gilts 0.64% (+5bp).