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Monday, August 24

24th Aug - Black Monday

Previously on MoreLiver’s:

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Eurozone condemned to permanent crisis without reformsThe Telegraph
Single currency will not become a "United States of Europe" as countries deal with the scars of the current crisis, former Brussels chief Olli Rehn warns

Merkel and Hollande to discuss migrant crisis at Berlin meetingFT

Greek Election: Syriza 2.0 vs. What’s LeftBB

Uncertainty to keep Fed’s finger off the trigger in SeptemberDanske Bank

6 reasons the FOMC is unlikely to move in SeptemberSober Look
The majority of economists still expect the Federal Reserve to begin the long-awaited liftoff next month.

Lawrence Summers: The Fed looks set to make a dangerous mistakeFT
Raising rates this year will threaten all of the central bank’s major objectives

FX: QEventNordea
Jackson Hole will ponder inflation, just as the Markets will ponder implications. FX important in light of recent China action. Fear is not a USD friend right now.

EURUSD surprise break higher was on the cardsTF
As EURUSD approaches the top of a seven-month long range, it is good to review the underlying drivers of the exchange rate and whether a breakout is near. My guess is that a break higher would be entirely possible, and a big surprise to the markets.

These Currencies Could Be The Next To Tumble In Global FX Wars – ZH
China plunges 8.5% triggering global rout – FT
China’s Stocks Sink Most Since 2007 as State Intervention Fails – BB
Oil slides to 6-year low as commodities tumble – FT
Great fall of China sinks world stocks, dollar tumbles – Reuters
European Stock Selloff Intensifies as DAX Heads for Bear Market – BB
What Next After Stock Drop? — View From the Street – WSJ
Chinese slowdown everybody knew was coming – WaPo

Morning MoneyBeat EuropeWSJ
Global Stocks Selloff Continues

Morning MoneyBeat USWSJ
As Markets Drop, Is 2007 the Next Stop for Dow, S&P?

Danske DailyDanske Bank

Euro rates updateNordea

Bad day for equities, which dragged down oil, yields bound to go lower * This week: Euro-area inflation back to zero? * Bond markets will gain from safe-haven flows as equities fall * EUR/NOK at yearly high on sliding oil prices

Morning MarketsTF
It's an absolute bloodbath in equities and commodities after continued concerns over China fueled risk-off to send the SHCOMP down 9% and lead Asia as well as commodities-led currencies to devastating plunges.

Daily FX CommentMarc Chandler
Market Rout Continues, North American Leadership Awaited

Daily ShotTF
The turbulence in markets got even uglier on Friday, with the S&P 500 out of its trading range, and rampant risk aversion has stoked expectations that the US Federal Reserve will take a dovish stance. The VIX volatility index has hit levels not seen since late 2011.

Daily Press SummaryOpen Europe
‘No’ campaign takes shape and seeks support of up to eight cabinet ministers *
Greek government still targeting 20 September for election despite delays * Osborne heads to Scandinavia to help build alliances for EU reform * Belgium calls for review of Schengen border-free arrangements following failed terror attack * Italian Foreign Minister: Refugee crisis could put Schengen into question * EU figures reveal increase in fraud within the EU budget * Podemos distant third in new Spanish poll  * German bank association warns Capital Markets Union must not come at the expense of banks

Brussels PlaybookPolitico
Terror on the Thalys — Merkel goes underground — Lebanon protests

Summarizing The "Black Monday" Carnage So Far


FX UpdateTF
The renewed meltdown in Chinese equities overnight kept the negative momentum in risk appetite running high after the swan dive in major US indices on Friday. In the major currencies, this means additional upside pressure in the euro and yen and weakness in the US dollar, seeing EURUSD and USDJPY confronting critical levels.

From the FloorTF
China's 'Black Monday' – with the Shanghai Composite closing down 8.49% – is creating panic in the global markets.

Suomi saamassa hyviä uutisia Saksasta - euroalueen ostopäällikköindeksit odotettua paremmat * Osakeindeksit laskivat jyrkästi perjantaina * Turvasatamakorot painuivat

Jan Hurri: Näin euro kaluaa Suomenkin talouttaTalSa
Yhteiskuntasopimus kaatui, joten hallitus yrittänee sisäistä devalvaatiota talouspoliittisin pakkokeinoin. Sopimus tai ei, odotettavissa on ansiotulojen laskua ja työttömyyttä. Niistä löytyvät euromaan talousjoustot. Euro ei jousta, joten sinä joustat

Ekonomisti: "Poliitikoille ei nyt kiitoksia heru"TalSa
Poliitikkojen pitäisi OP-ryhmän pääekonomistin Reijo Heiskasen mielestä nyt laittaa Suomen etu oman uran edelle. Talous näyttää vastaisuudessakin synkältä ja kipeitäkin muutoksia on tehtävä.