The Hang Seng underperformed its peer today losing .7%, being drug down by losses from property
developers. China Over Seas Land & Development, China Resources Land and Evergrande all took a dive
down 3.4, 4.6 and 5% respectively. On the Shanghai Composite, which was down .6%, Poly Real Estate
had the same story dragging the index down as it lost 9.2%. Property has been very weak and Unstable
in China and the China Security Regulatory Commission has urged companies multiple times to buy back
their shares in hopes of improving market sentiment.
European shares have pushed their way up ahead of the ECB meeting as the FTSEurofirst is currently
above .6%. Beiersdorf, makers of Nivea, takes the lead today up 4.8% as it increases its 2012 profit
outlook. Veolia was the worst performer of the index dropping 9% after results missed expectations.
Merrill-Lynch cut the stocks rating to “neutral” and said its results estimates could also yet be reduced.
Switzerland had a 50% rise in fx reserves last quarter taking its holdings to a massive 62% of GDP. This
may yet be very controversial in months to come.
In Q2, for the first time ever, volume of North Sea Brent exceeded that of WTI on NYMEX, reflecting
London may be just as important as New York for global oil trading.
Commodities begin the day mixed with crude up as natural gas, gold and silver all begin in the red.
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