Archive - Jul 30, 2015 - Story

• Second-quarter GDP seen rebounding on consumer spending, housing (Reuters)
• China Stocks Fall as Traders Puzzle Over Sudden Late-Day Swings (BBG)
• European 'alliance of national liberation fronts' emerges to avenge Greek defeat (Telegraph)
• Thomas Cook warns on earnings over Greece (MW)
• Largest Greek toy seller Jumbo warns of hit from capital controls (Kathimerini)
• Chevron and Exxon Get the Plaudits, but Some Smaller Drillers Faring Well (WSJ)
• Schäuble outlines plan to limit European Commission powers (FT)
• UBS Deal Shows Clinton’s Complicated Ties (WSJ)

"We turned openly, but moderately, bearish of shares late last week and for a day or two we appeared to have been wise in our decision. Clearly that wisdom has waned rather materially in the course of the last two trading sessions and following the Fed’s non-decision yesterday we found ourselves covering in the calls we had written against our “tanker” shares as well as covering in some of the derivatives we had had in place, thus taking our net position in our retirement funds from one that was modestly net bearish to one that is nearly net market neutral."

We start off the overnight wrap up with the usual place, China, where in a mirror image of Wednesday's action, stocks once again started off uneventful, then gradually rose in the afternoon session and meandered near unchanged territory until the last half hour, when out of the blue they tumbled to close near the day's low, some 2.2% below yesterday's closing level.  What caused it?  One possible catalyst came from Reuters which reported that that Chinese banks were investigating their exposure to the stock market via wealth management products and loans backed by stock as collateral.