Sharp losses in Europe followed by smaller falls in US equities overnight, following a bad day for Chinese stocks - ASX futures down 41 points

About the only things that rose among major markets last night were iron ore, equity market volatility and the US dollar. The broad sell-off arrived despite better-than-expected German business sentiment and US durable goods orders, so one--if one insists on looking for a smoking gun--can only really point to the disastrous day on Chinese stock markets as a catalyst to last night's bearishness. And it was a doozy - the CSI 300 fell 8.55%. Interestingly, as China began to sell off hard during the Australian day session yesterday, Australia's ASX 200 traded strongly higher into the close and finished up 24 points, which was about 50 points higher than its session lows. From the look of this morning's ASX 200 futures close, it looks like we might revisit yesterday's lows, but much of that may depend on the kind of open that we see in China this morning shortly after 11am, Sydney time.

Today's first chart shows the Deutsche X-trackers MSCI All China ETF (CN), which is doing a fairly good job of illustrating the mood of Chinese shares. You can see that yesterday's dip is pushing it back down toward its early July lows, which may be a bit of a support point based more on the willingness of the government to step and intervene in than a purely technical view. The second chart shows the ASX 200 cash index CFD continuing to track sideways but not quite showing signs of continuing its medium-term down-trend - so the jury is out on whether the ASX is heading higher or lower next. Lastly I've shown the Australian dollar (AUDUSD) attempting to register a low after a few severe sessions.

Future Generation Global Investment Company (FGG) application details remain at the bottom of today's update.

Source: Rivkin, Saxo Bank

To view the Rivkin economic calendar and Global Markets matrix, members can click here.

How to apply for the FGG IPO

As was the case with Future Generation Investment Company (FGX), Rivkin will be working with its broking partner CMC Markets in donating the broker stamping fees to charities associated with the investment company’s cause – in this case, youth mental health and homelessness.

With this in mind, we strongly urge you to follow the following steps accurately so Rivkin can add to the philanthropic nature of this IPO.

  1. Visit http://www.futuregeninvest.com.au/Global/prospectus.pdf to download and read the prospectus
  2. IMPORTANT: complete the Broker Firm Application Form on page 87 of the prospectus, this way we can donate the stamping fees
  3. Ensure you have sufficient funds in your Rivkin Securities stockbroking account to pay for the stock
  4. Enter the Broker Code 02662
  5. Enter the Adviser Code 0001
  6. Email your application to customerservice@rivkin.com.au or post it to:

Rivkin Securities FGG Offer
Po Box 1524
Double Bay 1360

Don’t have a Rivkin Securities stockbroking account? Open one now by emailing customerservice@rivkin.com.au (your Relationship Manager will call you back and pre-fill forms etc.) or phoning 1300 748 546. Our online brokerage is $11.00 or 0.11%, $9.90 or 0.11% for SMSFs that use Rivkin Super. PLUS we go the extra mile and donate non-core earnings like broking fees from this IPO to charity. You’re doing yourselves a favour and doing those in need a favour by getting involved.

This article was written by Scott Schuberg, CEO of Rivkin Securities Pty Ltd. Enquiries can be made via info@rivkin.com.au or by phoning +612 8302 3600.

Complex product warning

This article contains information about foreign exchange contracts, which are considered complex financial products. Please click here to read ASIC's foreign exchange trading article before considering an investment in foreign exchange contracts. 

This article contains information about CFDs, which are considered complex financial products. Please click here to read ASIC's "Thinking of trading contracts for difference?" document before considering an investment in CFDs.
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