Good evening everyone. As everyone seems to have expected, there was just no way that the SHCOMP was closing below 3,500 points today. Invisible hands helped prop Shanghai back from 3,490 to 3,507.74 in the last five minutes, leaving the index down 4.3% for the day and down 11.4% for the week. Here’s how the others fared:
- SZCOMP – day: -5.4% week: -11.9%
- Hang Seng – day: -1.5% week: -6.7%
- Nikkei 225 – day: -3% week: -4.9%
Commodity-sensitive EM currencies meanwhile remain hammered by crude’s continued drop, with the Singaporean dollar slipping 0.37% to 1.4078 against the buck, and the Malaysian ringgit sliding another 0.99% to 4.1685. Safe haven buying meanwhile sent 10-year U.S. Treasury and German bund yields down to 2.08% and 0.57% respectively. Here’s what else you should know:
German PMI knocks out estimates. Germany’s August flash PMI reading came in at a 54 today, above last month’s 53.7 reading and positively thrashing a Reuters poll of 51.7. Production output and orders apparently surged at their pace this month, helping the nation clock in its 28th-straight month of expansion. Reuters
China PMI hits six-year low.Caixin’s “flash” China purchasing managers’ index came in at a woeful 47.1 in August, below July’s final 47.8 reading and well below the 50 mark that separates expansion from contraction. Worse still is that Caixin’s data was compiled prior to the yuan’s devaluation, and may not have included its impact on the economy. MarketWatch
Japan’s manufacturing continues to pick up. The Nikkei Japan manufacturing purchasing managers’ index climbed to 51.9 in August – its fourth-straight month of growth – suggesting that Japan’s manufacturing sector is continuing to improve after contracting earlier in the year. New order growth apparently rose at its second-fastest pace this year, while production soared equal to its July record. Markit
Greece narrowly avoids default. The embattled nation managed to make a crucial payment to the ECB Thursday, largely thanks to a €13 billion aid package which came in just in the nick of time. The funds were part of a larger €86 billion Eurozone nation bailout which recently got past several key hurdles – including Wolfgang Schaeble. New York Times
Greek prime minister steps down. Alexis Tsipras is stepping down as prime minister of Greece and calling for a snap election September 20. Upon resignation Tsipras will be replaced by Vassiliki Thanou-Christophilou, president of the Greek supreme court, who will manage the transitional government. The Guardian
U.S. July home sales grow. Sales of previously-owned homes were up 2% to 5.59 million in July, according to the National Association of Realtors. The July growth is the fastest pace since February 2007 when home sales hit 5.79 million. Forbes
National Front ousts former leader. Far-right French party the National Front expelled Jean-Marie Le Pen. Le Pen helped found the party, but was called in for a disciplinary meeting after repeating comments he made deemphasizing the Holocaust. Le Pen’s daughter Marine Le Pen helped oust him as she makes her own moves for the presidency. Wall Street Journal
Nazi gold train found. Two people found what may be a Nazi gold train in Poland. The train, containing gold, gems, and guns, disappeared at the end of WWII when Soviet forces pushed toward Wroclaw, Poland. Rumors are swirling, and some say there could be up to 300 tons of gold on the train. BBC
You won’t believe this:
Russian police bust international cheese smuggler ring. Russian authorities have uncovered a 470 ton haul of illicit Edam worth 2 billion rubles ($30 million) as part of Moscow’s crackdown on Western imports. The forbidden fromage was tracked down during a dairy dragnet that raided 17 homes, warehouses and offices in the Moscow region. CBS News
Pyongyang rocks out! North Korea had its first ever rock concert when Slovenian industrial rock band Laibach (no, me neither) played to a crowd of 1000 seemingly bewildered North Koreans on Wednesday. The eclectic set list of Western cover versions included a “Sound of Music” medley, the Beatles’ “Across the Universe,” and arena rock anthem “The Final Countdown.” New York Times
Lingerie Fighting Championships to IPO. Here’s something 175 Wells Fargo employees might want to be on. SEC
Photo: Jamie Pichora