China liquidity dries up, Apple falls below its 200-day moving average and Puerto Rico stops paying into a fund. Here are some of the things that people in markets are talking about this morning.
The Shanghai Composite Index closed 3.7 percent higher following further state intervention to curb short-selling. Turnover in Chinese exchanges, which had eclipsed U.S. turnover in recent months has suffered a rapid decline, with volume in Shanghai 36 percent below the 30-day moving average. Meanwhile, German car-maker BMW said that slowing sales in China may force it to revise this year's profit forecast.
Apple below the 200-dma
Shares in Apple Inc. dropped 2.4 percent to $118.44 yesterday pushing the price below its 200-day moving average for the first time since 2013. Yesterday's session was the ninth in the last 10 that saw a price drop. Shares in Twitter Inc. dropped to their lowest since the IPO on Monday to $29.27, fueling speculation the company may be becoming a take-over target.
Puerto Rico's debt crisis escalated yesterday as the island stopped paying into a fund that pays its general-obligation bonds and one of its agencies defaulted for the first time. Without further financing, the government may run out of money in the months ahead, ratings company Standard and Poors said in a statement in Monday. Puerto Rico is due to propose a plan by September 1 for putting off payments on some if its debt.
The Australian dollar climbed 1.4 percent against the U.S. dollar after the Reserve Bank of Australia kept interest rates unchanged and left out any references to the necessity of further currency declines in its statement. The Australian dollar had declined to a six-year low of 73.85 U.S. cents on July 31.
Greece, day two
The Athens stock exchange fell again on its second day of trading since reopening after a five-week suspension. The ASE Index lost 4.9 percent by 10.40 a.m. in Athens, with the banks by far the biggest losers. Piraeus Bank SA fell by the 30 percent limit for the second day in a row, bringing the drop in its share-price to 51 percent since yesterday's open.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Who to trust on global growth - the tech bull or the commodity bear?
- Saudi stocks continue to defy oil's plunge...
- ...But the ruble is expected to continue its slide in August.
- Bloomberg pre-debate poll of Republican voters show a clear leader.
- Greece's black economy is being brought into the light - by the lack of cash.
- Epsom is about the solve the most annoying problem with inkjet printers.
- People are worried about people being worried about bond market liquidity.