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Good morning. Here’s what you need to know:
- Asian markets crashed overnight with the Shanghai Composite down 5.16%. European indices have rebounded, but are still in the red, and U.S. futures suggest a lower open. Click here to see how 10 unusual stocks are trading this morning >
- Chinese markets, in particular, were crushed in trading today. Beyond the Shanghai Composite, the Hang Seng was down nearly 2%. This sharp drop is being blamed on concerns over future tightening measures by the Chinese authorities to deal with rising inflation. Has this Chinese growth been real or is it just a debt burdened builder of bridges to no where >
- The selloff was so bad on the Shanghai Composite that two stocks reached the maximum drop allowed on a single day: China Southern Airlines and Hong Yuan Securities both fell 10%.
- Negative news also hit Europe this morning, with uncertainty over the eurozone bailout of Ireland rattling credit markets and equities. The euro has spiked and troughed on conflicting rumours a bailout package was in place. Here’s how Ireland became this massive problem >
- The G20 failed to come to any conclusion on trade imbalances or competitive devaluations. Instead, they issued a meek communique suggesting they would find a solution over the next year.
- There was, however, agreement on allowing countries to use measures to control capital inflows. Some of the countries hardest hit by hot money inflows will be able to use capital controls to defend themselves. Here are some of the states considering using capital controls >
- The fall in Asian equities did not hurt Petronas Chemicals’ IPO, which raised $4.1 billion through a share sale. Those shares were priced at the top of expectations, making Petronas the largest IPO in Southeast Asia.
- Eurozone growth slowed in Q3, with GDP falling to 0.4% from Q2’s 1.0%. This is being blamed on weakness in the eurozone’s fringe economies, pulling down more robust growth in Germany. Here’s why Europe is really doomed to crisis after crisis >
- Rolls Royce has agreed to fix engines it supplied to Qantas for A380 jets after one exploded last week. The company claims this will hit profit growth.
- Consumer sentiment data for November is released at 9:55 AM ET. It is expected to rise over October’s final reading, to 69. Follow the release at Money Game >
- Bonus: Russell Brand has described being married to Katy Perry as a “sitcom” where she has him under her thumb.