Malaysia
and Indonesia lead emerging markets currency rout - (www.ft.com) Here comes trouble. Emerging market currencies
are enjoying a moment of respite today after relentless pummeling in the last
few weeks. (That 'emergency markets' moniker seems to have been on the money.)
The dollar has weakened 0.3 per cent against the Turkish lira, 0.1 per cent
against the Malaysian ringgit, 0.25 per cent against the Indian rupee, 0.4 per
cent against the South African rand and so forth, writes Joel Lewin. But
if the rouble is anything to go by, this is nothing but a little breather. The
dollar is up 1.09 per cent against the oily Russian currency, breaking Rbs60
per dollar for the first time since March.
23 Nations Around The World Where Stock Market
Crashes Are Already Happening - (www.zerohedge.com) You can stop waiting for a global financial crisis
to happen. The truth is that one is happening right now. All over
the world, stock markets are already crashing. Most of these stock market
crashes are occurring in nations that are known as “emerging markets”. In
recent years, developing countries in Asia, South America and Africa loaded up
on lots of cheap loans that were denominated in U.S. dollars. But now
that the U.S. dollar has been surging, those borrowers are finding that it
takes much more of their own local currencies to service those loans. At
the same time, prices are crashing for many of the commodities that those
countries export. The exact same kind of double whammy caused the Latin
American debt crisis of the 1980s and the Asian financial crisis of the 1990s. As
you read this article, almost every single stock market in the world is down
significantly from a record high that was set either earlier this year or late
in 2014. But even though stocks have been sliding in the western world,
they haven’t completely collapsed just yet. In much of the developing world, it
is a very different story. Emerging market currencies are crashing hard,
recessions are starting, and equity prices are getting absolutely hammered. Posted
below is a list that I put together of 23 nations around the world where stock
market crashes are already happening. To see the stock market chart for
each country, just click the link…
Grad-School Loan Binge Fans Debt Worries - (online.wsj.com) Graduate
students account for 40% of borrowing; many seek federal forgiveness. Virginia Murphy borrowed a small fortune
to attend law school and pursue her dream of becoming a public defender. Now
the Florida resident is among an expanding breed of American borrower: those
who owe at least $100,000 in student debt but have no expectation of paying it
back. Ms. Murphy pays just $330 a month—less than the interest on her $256,000
balance—under a federal income-based repayment program that has become one of
the nation’s fastest-growing entitlements. She plans to use another federal
program to have her balance forgiven in about seven years, a sum set to swell
by then to $300,000.
A ‘death cross’ in Apple’s stock is coming - (www.marketwatch.com) One bearish chart for Apple Inc.’s stock
doesn’t a bear market make…but how about four scary-looking charts? Apple
shares AAPL, -2.35% have stabilized just above
multi-month lows, but this slideshow of charts warns that not only should
investors be wary of buying the stock, but that a further selloff into
bear-market territory could be right around the corner. First is an impending
bearish “death cross”
pattern, in which the 50-day moving average crosses below the 200-day moving
average. This pattern is seen by many as marking the spot that a shorter-term
decline graduates into a longer-term downtrend. While the validity of the
“death cross” has been widely debated, the last time one appeared, just as the
stock was pulling back from record highs, the stock fell another 27% in four
months. Based on the current trajectories of Apple’s 50-day and 200-day moving
averages, a “death cross” should be confirmed in a little over a week, or at
least by the end of the month.
Oil Cash Slump Triggers New Risks at World’s
Biggest Wealth Fund - (www.bloomberg.com) The
sudden slowdown in capital flows into the world's biggest sovereign wealth fund
will add to risks and make it more costly to adjust its strategy, its chief
executive officer said. As crude has plunged below $50 a barrel, Norway's fund
has seen a precipitous drop in cash injections from the government. It received
just 12 billion kroner ($1.4 billion) in the second quarter, compared with an
average of 60 billion kroner over the past 10 years. ``We still have a net
positive inflow, although it's very small these days,'' Yngve Slyngstad, head
of the fund, said in an interview in Oslo on Wednesday. While it won't
immediately change its strategy, the fund won't have ``the same amount of cash
to reinvest,'' he said.
Emerging-Market Losses Spread as Vietnam to Kazakhstan Devalue - (www.bloomberg.com)
Chinese slowdown sends ripples across Asian banks - (www.reuters.com)
Emerging Currencies Come Unstuck as China, Russia Fallout Grows - (www.bloomberg.com)
Turkey Lira Drops on Security Concern After Istanbul Explosion - (www.bloomberg.com)
Europe Stocks Fall as Miners, Auto Shares Retreat on China Fear - (www.bloomberg.com)
Chinese stocks go on wild ride as economic gloom deepens - (www.reuters.com)
PBOC Opens MLF Liquidity Tap Again as Yuan Defense Drains Funds - (www.bloomberg.com)
Why Fed minutes could be market mover - (www.cnbc.com)
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