The Hang Seng went the opposite direction losing 0.1% after a Chinese newspaper reported cuts in the
reserve requirement for commercial lenders were unlikely. Smaller banks were a hard hit sector today,
China Merchants Bank Co, which posted a 25.7 rise in first half net profits, slid 1.4% today. Corporate
earnings are to be a focus the rest of the month. Chinese instant noodle company Tingyi, jumped 5% to
close at its highest since May 4, with optimism that cost control will improve margins for the rest of the
year. China Pacific Insurance group was also among the losers dropping 1.2% today, after reporting a
55% fall in net first half profits.

The FTSEurofirst managed small gains today gaining 0.1% to keep its rally alive. The Spanish debt sale
tomorrow will be a crucial test with focus on the 10-year bond yields. Eurozone banks led the market
today with Banco Popolare gaining 6.2% and Societe Generale adding 1.3%. Deutsche was among those
not following the lead, down .6%, as the New York Times reported US prosecutors are investigating
them among several other banks on dealings with Iran and other sanctioned countries. September 6 th is
the next big coming date, as it is the next policy meeting.

Commodities are set to begin mixed as crude and gold begin down and silver and natural gas are set in
the green.

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