Market dynamics
●U.S. stocks continued to rebound. As of 19:00 Beijing time on August 30, S&P 500 futures fell 23.25 points (-0.79%), Nasdaq futures fell 70.25 points (-0.91%), and Dow futures fell 217 points (-0.82%). The FTSE 100 in the UK fell 0.25%, the French CAC40 index fell 0.41%, and the German DAX fell 0.32%.
●The UK retail industry is a century-old store, the founding component of the UK FTSE 100 index in the 1980s, and Marks & Spencer (LON:MKS) is about to be removed from the index. FTSE Russell said Tuesday evening that it will downgrade Marks & Spencer, software group Micro Focus (LON: MCRO) and insurance company Direct Line (LON: DLGD) to the UK FTSE 250 index in a regular quarterly assessment on Wednesday. Affected by the news, Marks & Spencer shares fell 1.8% on Tuesday, down nearly 75% from their pre-financial crisis highs hit in 2007 and more than half from their post-financial crisis highs hit in 2015.
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● According to statistics, the total amount of cash hoarded by Japanese companies currently reaches 506.4 trillion yen (about 4.8 trillion US dollars), exceeding the GDP of most countries, setting a record high. This number has more than tripled since March 2013.
●Affected by the deepening differences between Britain's "Brexit" period, the pound fell below the $1.20 mark against the US dollar on Tuesday afternoon, setting a new low since the flash crash in October 2016. In addition, the UK's 20-year and 30-year Treasury bond yields fell to record lows, at 0.773% and 0.879% respectively.
●Australia data released on Tuesday showed that the current account surplus reached 5.9 billion AUD in the second quarter, the first time since the second quarter of 1975, and hit a record high, thanks to the rising prices of key resources such as iron ore and coal.
●The UK retail sales growth in August slowed further to zero after hitting a 0.3% lowest growth rate in July, with shoppers reducing purchases of non-essentials before Brexit, and some households began to stockpile food. In the past 12 months, the average growth rate of retail sales in the UK has been 0.4%, hitting a new low since 1995 BRC began to collect data. Since the 2016 referendum on Brexit, British consumers have been supporting the economy, helping to offset the impact of businesses cutting investment spending. But economists say the recent signs of weakening household spending increase the risk of a recession as Britain prepares to withdraw from the EU.
Focus Focus (all Beijing time)
●21:45 August US Markit manufacturing PMI;
●22:00 August US ISM manufacturing PMI.
Important company rating changes
rating up:
● Deutsche Bank raised Abercrombie Fitch rating from "sell" to "hold", and the target price was downgraded from US$15 to US$14;
●FaBank raised DuPont rating from "neutral" to "outperform the market";
●FaBank raised Credit Suisse rating from "neutral" to "outperform the market".
rating downgrades:
Fabric Bank lowered UBS rating from "outperforming the market" to "neutral".
reiterated the rating, but the target price changes:
●Telsey Advisory Group reiterated the Best Buy "aligned with the market" rating, lowering the target price from $76 to $70;
●Telsey Advisory Group reiterated the Abercrombie Fitch "aligned with the market" rating, lowering the target price from $20 to $17.
Reporter Cai Ding Reporter Xie Xin
Cover image source: Photo Network
Investment is risky, independent judgment is very important
2 This article is for reference only and does not constitute a basis for trading. It is at your own risk.
