Morning Notes

02/092015 Argonaut Morning Note

U.S. stocks tumbled after weak manufacturing data in China fueled investors' worries about the world's second-largest economy. After calmer sessions on Friday and Monday, traders and investors said they were hoping last week's volatility had passed. However, signs of turbulence returned Tuesday. Still, newly released economic data in the U.S. has remained rather buoyant. Last Friday, the Commerce Department said U.S. consumer spending rose in July, and last Thursday a reading of gross domestic product showed a stronger second-quarter expansion than initially estimated.

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01/09/2015 Argonaut Morning Note

Stocks were poised to end a turbulent stretch with their worst monthly losses in years, driven by concerns over China and the timing of a U.S. interest rate rise. China's unexpected devaluation of its currency earlier in August amplified worries about a slowdown in the world's second-largest economy, which pummelled global stocks, commodities and emerging-market currencies. Investors also grappled with the prospect of the U.S. Federal Reserve pushing ahead with raising rates from rock-bottom levels, which have provided support for financial markets across the globe in recent years. The Dow fell 0.7% to 16,528 and the S&P 500 lost 0.8% to 1,972.

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31/08/2015 Argonaut Morning Note

U.S. stocks ended Friday not with a bang but a whimper. The market steadied, with major indexes notching gains for the week in a deceptively calm end to one of the most volatile trading periods in years. The Dow Jones Industrial Average slipped 12 points, or 0.1%, to 16,643. The S&P 500 added 1 point, or 0.1%, to 1,989 and the Nasdaq Composite rose 16 points, or 0.3%, to 4,828. Stocks, currencies and commodities seesawed last week as investors grappled with what could be a worse-than-expected slowdown in China, the world's second-largest economy. Those fears were reignited earlier this month when China unexpectedly devalued its currency, a move that signaled the government's concern about growth, and kicked into higher gear as economic data continued to show lackluster Chinese growth. Uncertainty about whether the Federal Reserve will be able to raise interest rates this year also added to the outsize moves across markets.

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28/08/2015 Argonaut Morning Note

US stocks have posted big gains for the second straight session as strong American economic data extended a global rally that began with a surge in beaten-down Chinese equities. The Commerce Department reported the US economy grew at an annual rate of 3.7 per cent in the second quarter, much higher than the 2.3 per cent initially estimated. The US growth report added to positive momentum from a 5.34 per cent rise in the Shanghai stock exchange, ending the worst five-day rout for almost two decades, and solid gains in European bourses.

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27/08/2015 Argonaut Morning Note

Stocks jumped as global markets showed tentative signs of regaining their footing after an extended rout fueled by growth concerns. Despite the gains, traders said they were skeptical that the early optimism could be sustained amid persistent doubts about the growth prospects of China and the rest of the world. The Dow rose 4.0% to 16,286 and the S&P 500 gained 3.9% to 1,941.

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