Archives of “August 10, 2019” day

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North Korea have fired off more missiles (Saturday morning)

  
Analysis, Politics

North Korea have fired off another round of ballistic missile tests Saturday morning NK time.

  • at least two short range missiles fired into the sea
  • off the NK east coast, Hamhung area
North Korea tested ballistic missiles earlier this week also. North Korea have been firing them quite regularly ever since the June 30 meeting between North Korean dictator Kim Jong Un and US President Trump.
North Korea have fired off another round of ballistic missile tests Saturday morning NK time.
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While this is a yen positive (rising geopolitical tensions prompt flows to liquidity) the market has become a bit jaded with the regular tests.

Fitch Rating confirm Italy at BBB and leaves outlook unchanged also (at negative)

  
Analysis, Economy

Some late news from after hours in the US Friday, on Italian sovereign debt ratings from Fitch.

  • Fitch affirmed Italy’s credit rating unchanged at BBB
  • maintained its negative outlook
Fitch:
  • This week’s political developments reinforce our assessment at the previous review that the government was unlikely to see out a full term and there is an increasing risk of an early election from the second half of this year
  • There are downside risks to the fiscal outlook should a future government opt to disengage from EU fiscal rules and be more willing to risk financial market instability
That’s a bit of respite for Italy as political instability rises, with the likelihood of early elections soon. Prime Minister Giuseppe Conte is facing a no-confidence motion in Parliament from coalition member Matteo Salvini. Italian instability is a negative for the euro, this lifting it at least to some extent.
Salvini:
Some late news from after hours in the US Friday, on Italian sovereign debt ratings from Fitch.

IMF issues annual report on China

  
Analysis, Economy
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Risks tilted to the downside amid trade uncertainty

The IMF is out with its annual report on China. They say:

  • risks are tilted to the downside amid trade uncertainty
  • China should maintain flexible yuan  if tariffs rise
  • China could intervene to support one in adverse scenario
  • China GDP growth could slowed to 4% by 2030
  • escalating trade tensions could warrant China stimulus
  • China augmented government debt to top 100% of GDP in 2024
  • The yuan is not significantly overvalued or undervalued. In line with fundamentals
  • IMF has been pressing China for more exchange-rate flexibility, less intervention in currency markets
  • China should open up more sectors to foreign competition to put its economy in best position to deal with trade pressures

US stocks end lower and a volatile week with declines

  
Analysis, US Market

Late session sell off takes the indices to mid range

The US stocks are ending the session lower and near the middle of the trading range after selling into the close snuff out an afternoon rally that saw the Dow move briefly into positive territory.
At the end of the day the closing levels are showing:
  • The S&P index closed  down minus 19.44.2 -0.66% at 2918.65
  • The NASDAQ index closed down -8.015 points or -1.0% at 7959.14
  • The Dow close down -90.75 points or -0.34% at 26287.40
The chart below shows the %low, high and closing changes for the North American and European market today.  The European markets ended near session lows.
Late session sell off takes the indices to mid range
For the week, the major indices are ending a volatile week in the red, with the Dow down the most.   The week’s final changes for the week are showing:
  • The Dow, down -0.75%
  • The S&P down -0.46%
  • The NASDAQ index -0.56%
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