The Hang Seng managed to rally in the afternoon to close up although volumes were extremely low, the rally was mainly due to investors covering their shorts. Among gainers were utilities, telecoms and Hong Kong large-caps. China sportswear brand Li Ning jumped 7.3% today after hitting a 7 year low last Friday.
European shares are playing it cautious today ahead of the ECB meeting this afternoon where there is expected to be a rate cut of 25 basis points. Let’s hope the expectations are right or the market will for sure be down tomorrow. The FTSE is up .3% however is also very light on volume today. Volkswagen is a standout today adding 6.4% on plans to take full control of Porsche in less than one month.
The MBA Applications were released today showing the purchase index up 1%, however the refinance applications remained down 8% similar to last week.
GM reports is automobile sales rose 10.1% in China, however the announcement was ill-timed as it also had to recall 2000 Captiva Sport crossovers due to braking issues.
Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market. Comments can be directed to ryghcw19@uww.edu