Chinese stocks rally, Nikkei gives up all of its 2015 gains and Euro-area growth comes in higher than the initial estimate. Here are some of the things people in markets are talking about today.
The Shanghai Composite Index ended Tuesday's session 2.9 percent higher, with all the gains coming in the last hour of trading. Late-day rallies have become a hallmark of government intervention in the stock market, with Goldman Sachs estimating that Chinese authorities have spent $236 billion propping up the market since a rout began three months ago. Growth pressures in the wider economy remain with trade data from the customs administration showing overseas shipments declined 5.5 percent from a year earlier in dollar terms.
Nikkei 225 flat for year
In Japan, the Nikkei 225 Stock Average dropped 2.4 percent, erasing all of that gauge's gains for 2015 and taking its losses from its June 24 peak to 16 percent. The Cabinet Office in Tokyo said that the economy shrank less than initially estimated in Q2, dropping an annualized 1.2 percent, but this wasn't enough to lift stocks that seemed to take their lead from weaker Chinese trade data.
Eurostat, the European Union statistics office, said that the euro-area economy expanded 0.4 percent in the second quarter, higher than its initial estimate of 0.3 percent growth. Growth in the first quarter was also revised higher. European equities are higher today, with the Stoxx Europe 600 Index up 1.9 percent at 10:40 a.m. London time.
Spanish house-prices jumped 4.2 percent in the second quarter, the biggest rise since Spain's National Statistics Institute started publishing prices in 2007. With a general election due to be held in December, Prime Minister Mariano Rajoy will welcome the improving data in a country still suffering the effects of the 2008 property crash.
Yesterday Glencore Plc, the Swiss producer and trader of raw materials announced a $10 billion debt reduction plan which included moth-balling copper projects in the Democratic Republic of Congo and Zambia which, the company says, will remove 400,000 metric tons of copper cathode from the market. The price of the industrial metal rose as much as 1.4 percent to $5,220 a ton following Glencore's announcement.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Greetings from Bitcoin Island.
- Move over Exxon, Russian drillers are the world's top performers.
- De Beers bows to market pressure, lowers diamond prices.
- Schaeuble says refugee crisis is an absolute budget priority.
- Germany's exporters should say thank you to the ECB.
- Prospects for financial armageddon in China may be overblown.
- What to watch for at tomorrow's Apple iPhone event.
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