Chinese stocks surge for second day, Japanese inflation goes nowhere and oil pares its massive gain. Here are some of the things that people in markets are talking about today.
Chinese markets surge for second day
Chinese equity markets surged for a second day, with the Shanghai Composite Index closing 4.9 percent higher. Despite rising over 10 percent in the past two trading sessions, the index is still down 37 percent from its June high, something Chinese authorities are keen to blame on Western central banks. Bank of America has warned that stocks will fall after the intervention ends.
The Bank of Japan's key inflation gauge dropped to zero as consumer prices excluding fresh food were unchanged from July of last year. This is the third time the measure has shown no growth this year, putting further pressure on central bank Governor Haruhiko Kuroda as the BOJ continues to miss its 2 percent target. There was one bright spot for the Japanese economy, though, as household incomes have started to rise.
Oil pares gains
Oil is falling again this morning, following Thursday's 10 percent rally. West Texas Intermediate for October delivery fell to $41.78 a barrel on the New York Mercantile Exchange earlier before recovering to $42.40 at 10:50 a.m. London time. Despite these losses, oil is poised to close higher for the first time in nine weeks.
A caretaker government has taken power in Athens ahead of the September 20 elections in Greece. Tsipras' lead in polls has been narrowing ahead of that vote, leading opposition leaders to warn of instability if no party or coalition is able to form a government following the election.
Yesterday's U.S. GDP figures surprised to the upside, and today we get a look at the consumer as personal income and personal spending data is released at 8:30 a.m. ET. Later we'll get the University of Michigan Sentiment reading for August with expectations for small a rise to 93 from July's 92.9. Finally, the Jackson Hole conference continues in Wyoming. No Yellen or Draghi this year, so investors will be looking out for comments from Fed vice-president Fischer for any hints on the timing of Fed tightening.
What we've been reading
This is what's caught our eye over the last 24 hours.
- The Japanese day trader who made $34 million while others panicked this week.
- Has a Nazi gold train really been found in Poland?
- Space mining, not as far-fetched as you might think.
- The credit market that missed the rout because it was on holiday.
- $30 oil hurts Putin's popularity, $22.50 oil destroys Russia's financial system.
- Norway has a trove of tools to survive cheap oil.
- Some Fed thoughts: QE4 and all that.
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