Here is what you need to know.
Something very unusual happened in the markets. The S&P 500 index has fallen by over 1% while yields on the benchmark US 10-year note have risen by 3% from its previous closing level (not nominal terms). This is something that has only happened on 36 occassions dating back to 1962, according to analysis from sentimenTrader.
UK jobless claims unexpectedly rose. Data from the Office for National Statistics showed 2,400 people claimed jobless benefits in July, which was above the 1,800 claims that economists had anticipated. The British pound is little changed near 1.3195 against the dollar.
India’s wholesale price index hit a 2-year high. Producer prices rose 3.74% year-over-year in August, but missed the 4.01% print that economists had forecast. The Indian rupee is stronger by 0.1% at 66.8900 per dollar.
Monsanto’s board likes Bayer’s offer. The deal is worth about $66 billion, or $128 per share, according to multiple reports.
JPMorgan is now the biggest bank in the world by assets. Shares of Wells Fargo slid 3.3% on Tuesday to close at $46.96 per share, giving the company a market capitalisation of $236.9 billion, compared with JPMorgan’s $240.3 billion, Bloomberg reports.
Carl Icahn wants to own 50% of Herbalife. The activist investor says he is asking the FTC for permission to increase his Herbalife stake from 35% to 50%, and that the company would be better off going private.
Hank Greenberg’s trial has begun. Opening arguments began on Tuesday in the trial of former AIG head Hank Greenberg. According to Reuters, Greenberg faces “civil charges from the New York Attorney General’s Office of orchestrating a $500 million transaction to inflate the insurer’s reserves and a $200 million transaction to hide underwriting losses.”
Investors are sceptical of the world’s oldest bank’s plan to raise cash. Monte dei Paschi di Siena needs to raise up to 5 billion euros ($5.6 billion) to remain afloat and stave off a default that could have wide ranging implications in Europe, but investors are sceptical to back the bank’s third recapitalization in as many years, Reuters reports.
Stock markets around the world are mixed. China’s Shanghai Composite (-0.7%) and Japan’s Nikkei (-0.7%) led the losses in Asia while Britain’s FTSE (+0.7%) paces the gains in Europe. S&P 500 futures are up 3.00 points at 2,125.25.
US economic data is light. The Department of Energy’s oil inventory data will be released at 10:30 a.m. ET. The US 10-year yield is down 1 basis point at 1.72%.
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