Five Things Everyone Will Be Talking About Today

China goes on holiday, oil back is below $45, and European stocks fall for a third day. Here are some of the things that people in markets are talking about today.

China holiday

Chinese markets are now closed until Monday, much to the relief1 of investors rattled by the global volatility caused by the selloff in the country’s stocks. The Shanghai Composite Index ended Wednesday’s session 0.2 percent lower2, having fallen as much as 4.7 percent in earlier trading. Goldman Sachs is sticking to its bullish view3 on Chinese equities, saying on Wednesday that valuations are attractive and improving economic data will spur a rebound.

Oil drops

Crude dropped below $45 a barrel4, with West Texas Intermediate for October delivery on the New York Mercantile Exchange trading at $44.52 a barrel at 10:25 a.m. London time. This follows Tuesday’s 7.7 percent decline in the commodity that had seen a 27 percent surge5 in the previous three sessions. According to John Kemp,6 all those violent swings in crude prices “should convince even the most die-hard believers the oil futures market is neither efficient nor rational.”

European stocks decline

After trading higher at the open, European stocks have slipped into negative territory7 for a third day in a row. The fall in crude prices is hitting oil producers with a gauge of their performance dropping 1.1 percent at 10:30 a.m. London time. The Stoxx Europe 600 slid 0.4 percent.

European bonds await Draghi

Germany’s 10-year government bond yields fell to 0.77 percent8 at 11.00 a.m. London time after touching a six-week high of 0.82 percent on Tuesday, ahead of tomorrow’s meeting of the governing council of the European Central Bank in Frankfurt. Continuing low inflation9 and volatile markets mean expectations are for an increase in rhetoric from Mario Draghi at Thursday’s post-meeting press conference. Richard McGuire, head of European rates strategy at Rabobank International in London does not expect any policy changes, but adds, “One would expect the ECB to provide some jawboning.

Coming up…

With investor focus turning to Friday’s U.S. non-farm payrolls report, today’s ADP employment change data, which is due at 8:15 a.m. ET, will be closely watched. At 2:00 p.m.

ET the Federal Reserve publishes its Beige Book based on reports from each of the 12 regional banks in the Federal Reserve system.

What we’ve been reading

This is what’s caught our eye over the last 24 hours.

Want to receive this post, and more, into your inbox every morning? Sign up here10.


  1. ^ much to the relief (
  2. ^ 0.2 percent lower (
  3. ^ its bullish view (
  4. ^ dropped below $45 a barrel (
  5. ^ a 27 percent surge (
  6. ^ According to John Kemp, (
  7. ^ slipped into negative territory (
  8. ^ fell to 0.77 percent (
  9. ^ low inflation (
  10. ^ Sign up here (

Leave a Reply

Your email address will not be published. Required fields are marked *

  • No product categories exist.