The stock markets in the United States gained today as Chinese equities traded higher. Yesterday, the U.S. equity markets were down due investors concern that China’s economy could be hurt by the ongoing selloff of Chinese equities.
The China Securities Regulatory Commission imposed a new policy banning major shareholders, corporate executives, and directors from selling their stakes in listed companies for six months to prevent the market rout.
Canyon Distressed Opportunity Fund likes the backdrop for credit
The Canyon Distressed Opportunity Fund III held its final closing on Jan. 1 with total commitments of $1.46 billion, calling half of its capital commitments so far. Canyon has about $26 billion in assets under management now. Q4 2020 hedge fund letters, conferences and more Positive backdrop for credit funds In their fourth-quarter letter to Read More
It appears that the new intervention is working—the Shanghai Shenzhen CSI 300 Index rebounded 6.4% to 3,897.63 points.
In Greece, the government is expected to submit its new economic plan that included spending cuts in exchange for a new bailout package. The Greek government has until Thursday midnight to submit the plan to European leaders, which are scheduled to meet on Sunday, to make a decision in response to Greece’s proposal.
Commenting on the market trends, Randy Warren of Warren Financial Service & Associates told Bloomberg, “Every time we get to the end of the day, we start losing stream because people start worrying about what’s going to happen overnight. Is Greece going to make headlines? Is China going to make headlines? There’s a lot of worry about what might happen.”
On the other hand, Terry Morris, a senior equity manager at National Penn Investors Trust Co said, “I’m not sure that this rally is for real. I wouldn’t be surprised if this were viewed as a selling opportunity. Now that we’re entering into the thick of earnings season, investors might be more focused on that.”
Today, the International Monetray Fund (IMF) reduced its global growth forecast to 3.3% this year due to the weakness of economic activity in the first quarter. The international creditor said the impact of the Greek debt crisis to the world economy was likely limited.
Yesterday, the IMF reiterated its call to the Federal Reserve to delay raising interest rates until the first half of next year. The international creditor said the central bank should wait until it sees “greater signs of wage or price inflation.”
Meanwhile, the Department of Labor reported that the number of people who filed for unemployment benefits increased by 15,000 to 297,000 for the week ended July 4—the highest since February. The number seemed represented a pause in the improvement of the labor market.
- Dow Jones Industrial Average (DJIA) – 17,548.02 (+0.19%)
- S&P 500- 2,051.30 (+0.23%)
- NASDAQ- 4,922.40 (+0.26%)
- Russell 2000- 1,236.04 (+0.58%)
- EURO STOXX 50 Price EUR- 3,420.03 (+2.78%)
- FTSE 100 Index- 6,581.63 (+1.40%)
- Deutsche Borse AG German Stock Index DAX- 10,996.41 (+2.32%)
- Nikkei 225- 19,855.50 (+0.60%)
- Hong Kong Hang Seng Index- 24,392.79 (+3.73%)
- Shanghai Shenzhen CSI 300 Index- 3,897.63 (+6.40%)
Stocks in Focus
Coty declined almost 5% to $30.04 per share after signing an agreement to acquire the 43 beauty brands (RMT Brands) of Procter & Gamble.
The stock price of Walgreens Boots Alliance climbed more than 4% to $89.85 per share. The largest pharmacy retail chain in the United States reported earnings that beat consensus estimates for the third quarter. Walgreens Boots Alliance posted earnings of $1.20 per share, higher than the $0.87 expected by analysts.
VisionChina Media was the highest gainers among the companies listed on NASDAQ today. The company’s stock price surged to as much as $10.21 per share but eventually closed to $7.72 per share, up by more than 31%.