Five Things Everyone Will Be Talking About Today
Yuan fallout, U.K. jobs data and German resistance to a Greek deal. Here are some of the things that people in markets are talking about today.
Asian currencies have suffered their biggest two-day selloff since the 1998 crisis as fallout from China's yuan devaluation continues. The People's Bank of China intervened towards the end of the trading session to stem yuan losses. Shares in Shanghai and Chinese stocks listed in Hong Kong closed lower.
European bonds, equities
Yields on German government two-year notes fell to a record low as developed nation bonds surged. Concern is mounting that economic struggles in China will have consequences for global growth. European stocks are also getting hit, falling the most in six weeks with auto-manufacturers and miners sensitive to China leading the slide.
U.K. unemployment rose to 5.6 percent in the second quarter, slightly higher than the first quarter reading of 5.5 percent. Total pay, which includes bonuses, rose an annual 2.4 percent, below the median estimate of economists surveyed by Bloomberg of 2.8 percent. The pound was little changed against the dollar at 11:00 a.m. London time.
The Greek preliminary bailout deal risks being delayed by German lawmakers which puts a tight timetable for getting cash into the country in doubt ahead of a bond repayment due to the European Central Bank on August 20. Some members of Angela Merkel's CDU oppose voting on the new Greek package early next week, which would allow Greece to access funds needed for bank recapitalizations and bond payments.
The International Energy Agency says that it expects the oil glut to last through next year. Stockpiles won't be reduced until the fourth quarter of 2016, or after, if sanctions on Iranian crude are lifted. The production surplus was 3 million barrels a day in the second quarter of 2015, the highest in 17 years, the IEA said.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Here's one big winner from the drop in global oil prices.
- How hackers made millions stealing corporate secrets.
- Why your boss wants to track your heart rate at work.
- The Dow is giving traders a headache.
- Five things you need to know about Greece's third bailout.
- Malaysian ringgit falls beyond four per dollar for first time since 1998.
- Alphabet fallout - will .xyz end .com's dominance?
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