China stocks slump again, Bank of Japan holds policy unchanged, Glencore hits a new all-time low. Here are some of the things people in markets are talking about this morning.
China equities fall
The Shanghai Composite Index dropped for a second day, closing 3.5 percent lower after a session that saw volumes 36 percent below their 30-day average. Trading in Chinese equity futures, down 99 percent from the June high due to a government clampdown, remained thin as brokers try to tempt investors into trading futures overseas.
Bank of Japan holds
The BOJ held off increasing stimulus at its meeting on Tuesday, with Governor Haruhiko Kuroda telling reporters that the bank sees a gradual recovery in the economy continuing. Eleven of the 35 economists surveyed by Bloomberg are now expecting the bank to add stimulus at its next meeting on October 30. The yen strengthened 0.6 percent against the dollar to 119.53 by 9 a.m. London time.
Mixed European data
European car sales rose 11.5 percent in August, the second-fastest gain this year, with registrations climbing to 781,676 from 701,251 a year earlier. In the U.K., inflation returned to zero, driven down by the cost of motor fuel and clothing, increasing expectations that the Bank of England is still months away from moving its benchmark rate higher. Meanwhile, in Germany investor confidence fell for a sixth month, with the ZEW index of investor and analyst expectations dropping to 12.1 from 25 in August, well below the median estimate of 18.1 in a Bloomberg survey of economists.
Glencore falls to record low
Glencore Plc slumped to a new all-time low of 118.1 pence in trading this morning with shares wiping out all the gains since the company announced a $10 billion debt-reduction plan earlier this month. Copper retreated for a third day, with aluminum, nickel and zinc also declining.
U.S. retail sales data is due to be released at 8:30 a.m. ET, with the median estimate from economists surveyed by Bloomberg pointing to a 0.3 percent increase. Later, at 9:15 a.m. ET we get industrial production data. With uncertainty remaining high ahead of the Fed decision on Thursday, these numbers will be closely watched.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Get used to the volatility, says the hedge fund that called the August rout.
- Once unthinkable, economists now say debt relief for Greece is a given.
- Here's what Treasury auctions are telling us about inflation: there isn't any.
- Porsche challenges Tesla with fast-charging electric car.
- Deutsche Bank may eliminate as much as 25 percent of its workforce.
- Credit Suisse nears $80 million dark-pool settlement.
- And here's exactly where the presidential candidates' cash came from.
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