Tuesday, August 20, 2013

Morning Memo: Tuesday, August 20, 2013

ICYMI....yesterday we posted a piece on Q2 earnings called:  "Q2 Earnings:  Factoids & Takeaways".  Please take a look and share thoughts! Thanks!!

"Morning Memo" begins below this "NOTE for  NEWCOMERS" to "Morning Memo"...... Each morning, we post a short bullet-point list of noteworthy events, data, etc that find their way into the assessment of global markets.  It's far from complete and is not meant to be an exhaustive reconciliation of all things that could possibly impact stocks, bonds, currencies and commodities!  Rather, it's best viewed as a cryptic memo of "highlights", noteworthy items that took place in Asia, European and US hours.....and color-coded 'Red' for seemingly negative impact on equity markets, 'Green' for positive.
This will also serve as a useful review mechanism, as scrolling through the series of "Morning Memo" posts over time ought to summarily highlight what generally drove price action.  

We hope you find this useful and informative....and as always, that you'll share feedback!!
5:30am, ET....
  • Bad night for Asian stocks and currencies!  Equity markets meaningfully lower:  Nikkei down 2.6%, Heng Seng down 2.2%, and Indonesia down another 4% after Monday's 5+% drop.  
  • Asian currencies continue to melt down on fears of Fed tapering which is causing capital to 'fly' from EM countries in search of higher yields in rising interest rate environments in the US and other developed markets.
  • Indonesia's worse than expected Current Account deficit pummeled the currency, down almost 2% today, hitting levels not seen since '09.
  • India's Rupee continues its fall!
  • European markets catch the downward spiral contagion!  Markets open lower across the board.  Fed tapering is the term de jour (yet again).
  • US..late yesterday, Dept of Justice announces another probe into JPMorgan, this time involving energy trading.  Earlier yesterday, JPMorgan was under the spotlight for allegations that they hired children of influential Chinese leaders as a way to garner business in China.
  • US...Fed urges banks to raise more capital for times of stress.
  • (Editorial note:  as an aside, I wrote a piece a long time ago describing the US banks as experiencing a version of the arcade game called "Whack-a-Mole"!  Every time they pick  up their heads in search of light and fresh air, they get hammered for something new.  That said, I'm not condoning, in any way, activity that is untoward, but the constant barrage of assaults on banks from all directions is notable).
  • more later....

Please continue to visit Soos Global Market Musings for updates.
(Sign up to "Follow by Email"!  And share with others!)

(Please note: This article is solely meant to be thought provoking and is not in any way meant to be personal investment advice. Each investor is obligated to opine and decide for themselves as to the appropriateness of anything said in this article to their unique financial profile, risk tolerances and portfolio goals).
Disclaimer: Please read and consider important information related to all communication made by Soos Global on this site by clicking here.
Additional Disclaimer: currently long many stocks/ETFs.  Positions may change at any time without notice.

    No comments:

    Post a Comment