Updated throughout the day
August 26
Good evening everyone. Chinese stocks notched up their first five-day losing streak in six months today as Shanghai and Shenzhen brush off the PBOC’s twin rate cuts to finish the day down 1.27% and 3.05% respectively. Hong Kong’s Hang Seng Index was also dragged into the mainland’s swirling vortex of sell-offitude, closing the session down 1.52%, while Japan’s Nikkei Average continued to rip higher, ending the day up 3.2%. The major European markets however, aren’t doing as well:
- DAX: -1.37%
- FTSE 100: -1.30%
- CAC 40: -1.36%
Surprisingly, S&P 500 minis are pointing to a 1.16% climb at the open, while mini Dow futures are signalling a 1.13% rise. Hmm. Why is this so familiar? Did the same thing happen yesterday?
Here’s what else you need to know:
Two Nato soldiers killed by attackers in Afghan uniforms. The killers, wearing uniforms of the Afghan security forces, opened fire at an Afghan military base today. Details of the attack in Helmand province, and the nationalities of the victims, are not clear. The New York Times
Its damp Down Under. Hundreds of residents south of Sydney have been forced to flee their homes and evacuate schools due to rising floodwaters. Nearly 70 people have been rescued since the severe weather hit the city’s suburbs on Monday. BBC
What market rout? Just to show you how disconnected the Chinese stock market is to their economy, the Westpac MNI China Consumer Sentiment Indicator climbed to a 15-month high this month, punching in its third straight month on the rise. The survey was taken prior to the Tianjin blasts and the yuan devaluation though, so it may be a little worse now. Financial Times
China may have more RRR cuts in the pipeline. While the nation still boasts $3.65 trillion in currency reserves, research claim that it could be far less when factoring in capital flight, yuan defense, and the nation’s short-term external debt. If true, this may force China to further slash its reserve requirement ratio just to prevent further tightening. The Telegraph
More violence in France. Four have been killed in a travellers’ camp after a drunken gunman shot dead a family of three, including a baby. The attacker was injured by police but not before he killed a gendarme. Reuters
Turkey to join air fight against IS. The US and Turkey are finalising technical details on plans to integrate Turkey into the coalition against Islamic state. Reuters
Singapore sets election date. Singapore dismissed its parliament Tuesday until its general election, scheduled for September 11. The People’s Action Party has been slowly slipping in its hold of parliamentary seats since leading the nation after its independence 50 years ago. Wall Street Journal
Onion issues make India cry. As the world watches the stock markets, Indians are keeping their eyes on the price of Onions. The humble vegetable has become very expensive of late. A big problem in a country where the it is one of the most politically sensitive commodities. Financial Times (paywall)
You won’t believe this…
Injured Toucan gets new, 3D printed beak. Tieta, a Toucan found with only half of her upper beak remaining, is now sporting what could be the world’s first 3D printed avian beak prosthesis. Nobody knows what happened to her lost bill, but Tieta appears to have adjusted to her new one all the same. Yahoo!
23-year old man dressed as Prince George for a week. And what did he learn from it? That New Yorkers do not give a hoot on what you’re wearing. Mashable
Clumsy kid destroys Italian masterpiece. A 12-year-old boy in Taiwan has punched a hole in a $15 million painting after tripping and catching his fall on the artwork. The incident was captured on CCTV. CNN
Photo: David Hunter