Breaking News
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% Upgrade now

Markets Terrified China Will Cause A Panda Bear Market

By CMC Markets (Jasper Lawler)Stock MarketsAug 17, 2015 11:24
uk.investing.com/analysis/markets-terrified-china-will-cause-a-panda-bear-market-3876
Markets Terrified China Will Cause A Panda Bear Market
By CMC Markets (Jasper Lawler)   |  Aug 17, 2015 11:24
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
NDX
-1.73%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
UK100
+0.18%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US500
-1.51%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
-1.71%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
WMT
-1.93%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
URBN
-0.66%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

The Chinese currency devaluation has markets terrified of a Panda bear market that will eat all the green shoots of global growth.

Driven by the devaluation of the Chinese renminbi and expectations of a rise in US interest rates; emerging currencies continue to drop with the Indian rupee falling to two-year lows and the Malaysian ringgit at the lowest in 17 years.

European markets opened higher on Monday but another slump in China-dependent mining stocks meant the FTSE 100 quickly gave up initial gains while futures point to a lower open on Wall Street.

Analyst downgrades mean shares of Glencore (LONDON:GLEN) are getting stomped on ahead of what’s likely to be a pretty poor quarterly earnings report this week. Shares of H&M are as much as 2% higher after reporting a rise in sales.

The Chinese currency devaluation caused major fallout across global equity markets last week but has hit Europe harder than the US. The resulting lower inflation and rising dollar from any sustained yuan weakening could be a major deterrent for the Federal Reserve to hike interest rates. So while European equities ended the week sharply lower, US stocks rebound sharply off the lows to finish the week higher.

Federal Reserve minutes released on Wednesday could offers some insight on how troubles in China and a huge slide in oil prices will impact the timing of any move on interest rates. The last Fed meeting took place before the yuan devaluation; a big consideration for rate hike timing- so could be a bit stale.

US retailers including importers from China such as Wal-Mart (NYSE:WMT), Target and Home Depot will dominate the earnings calendar this week. The weaker yuan is of benefit to US companies buying Chinese goods with a stronger dollar but they need a more confident consumer at home who is willing and able to buy the goods. US retail sales picked up in July but were pretty sluggish throughout the second quarter.

Estee Lauder and Urban Outfitters (NASDAQ:URBN) report quarterly earnings on Monday.

Futures suggest the:


S&P 500 will open 1 point lower at 2,090 with the
Dow Jones expected to open 7 points lower at 17,470 and the
Nasdaq 100 5 points higher at 4,535.

DISCLAIMER: CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed.

No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. "

Original post

Markets Terrified China Will Cause A Panda Bear Market
 

Related Articles

Jesse Cohen/Investing.com
Expect A Wild October By Jesse Cohen/Investing.com - Sep 30, 2022

October is historically the U.S. stock market’s most volatile month Market focus on nonfarm payrolls report, CPI, Q3 earnings Brace for more violent swings in the coming...

David Madden
Is Apple turning sour? By David Madden - Sep 27, 2022

Apple’s (AAPL) share price rallied in late July as the third-quarter numbers topped forecasts, but the stock has been sliding since because of the wider sell off in the markets....

Markets Terrified China Will Cause A Panda Bear Market

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email