8-25-2015 Economic Times

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Aug
25 Aug 2015 In GLOBAL ECONOMIES Comments Off on 8-25-2015 Economic Times
GLOBAL
12 records hit in the global market selloff
The selloff in global markets gathered force on Monday, with commodities and stocks hitting a number of records. Here’s a list of the highs and lows.
Buy low, sell high…but stay away from commodities
The global stock rout may have claimed some victims this week, but equity markets can still offer returns for investors.
Global Selloff Puts a Record Year for Dealmaking Under Threat
The global stocks selloff could find its next victim in this year’s booming market for mergers and acquisitions.
Dealmaking activity, which was on track to pass $3 trillion this year and potentially surpass 2007’s record, may slow down as the wave of selling erodes executives’ confidence in pursuing growth via M&A or initial public offerings. Deals with some stock component, which account for more than half of all pending takeovers, could be particularly at risk.
“The huge stock market selloff and concerns about China’s actual growth rates will likely have an adverse effect in forthcoming M&A deals and IPOs,” said Richard Cranfield, a partner at law firm Allen & Overy LLP in London, who is also global chairman of the firm’s corporate practice and co-head of its financial institutions group, in a telephone interview. “Those deals that are being negotiated but aren’t public yet will become vulnerable.”
USA
After historic 1,000-point plunge, Dow dives 588 points at close
http://money.cnn.com/2015/08/24/investing/stocks-markets-selloff-china-crash-dow/index.html

After an unprecedented 1,000-point decline at the open on Monday, the Dow closed with a loss of nearly 600 points.

It was an extremely turbulent day for U.S. stocks driven by deep fears about China’s economic slowdown. Stocks staged a comeback that nearly brought the Dow back into positive territory but that ultimately failed.

EUROPE
Russia plots FX move as ruble nears 2015 low
The Russian ruble slumped to near 2015-lows on Monday, extending a drop that Moscow has said it will try to combat through foreign currency sales.
Markets latest: China slides 7.6%; Europe bounces
Futures in the U.S. pointed to a higher open Tuesday and European bourses rallied strongly in morning trade.
Europe Stocks Climb With U.S. Futures, Dollar
European shares rallied with U.S. stock-index futures after Monday’s $2.7 trillion global equity wipeout and oil led a rebound in commodities. The yen retreated with Treasuries as haven demand eased.
Equities clawed back some losses after the biggest selloff in Europe since the financial crisis and futures signaled the Standard & Poor’s 500 Index will rebound after entering a correction. Commodities climbed from a 16-year low. Gains came even as the wave of selling continued in Chinese shares, capping the biggest four-day drop in almost 19 years. The yen fell for the first time in five days.
CHINA
China Said to Halt Stock-Market Support Amid Intervention Debate
China has halted intervention in the stock market so far this week as policy makers debate the merits of an unprecedented government campaign to prop up share prices, according to people familiar with the situation.
Some officials argue that falling stocks will have a limited impact on the world’s second-largest economy and that the costs of supporting the market are too high, said one of the people, who asked not to be identified because the deliberations are private. Officials who back intervention say tumbling shares pose a risk to the banking system, the people said.
The Shanghai Composite Index sank 15 percent over the past two days, extending a $4.5 trillion rout since mid-June that has shaken confidence among equity investors around the world. Chinese policy makers are trying to balance a pledge to loosen their grip on markets against the need to maintain financial stability amid the weakest economic expansion since 1990.
The China Securities Regulatory Commission didn’t immediately respond to a faxed request for comment. On Aug. 14, the CSRC said China Securities Finance Corp., the state agency tasked with supporting share prices, would no longer add to equity holdings unless there’s unusual volatility and systemic risk.
China stocks plunge more than 7% as panic continues
http://money.cnn.com/2015/08/24/investing/china-world-stock-markets/index.html
Shanghai Comp skids 7.63% to end at 8-month low
The mayhem in Chinese equity markets showed no signs of abating on Tuesday, with the key Shanghai Composite index accelerating its downfall to settle below the key 3,000 mark.
China’s ‘Black Monday‘ woes continue
Chinese stocks have plunged for a second day after worries over China’s slowing growth triggered a global sell-off.
The Shanghai Composite, China’s main stock exchange, fell 7.6% on Tuesday – after losing 8.5% on what state media have called China’s “Black Monday“.
It was the worst fall since 2007 and caused sharp drops in markets in the US and Europe
Tokyo’s Nikkei index had a volatile day, closing 4% lower.
ASIA
Asia set for second day of pain after US plunges
The mayhem in Asian shares will likely continue on Tuesday, as China-related fears sparked a massive sell-off on Wall Street and the commodity space.

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