China stocks continue slide, PMI declines, is the Global Engine Slowing?

[Raam]

CHINESE WALL: China stocks continue slide, PMI declines, is the Global Engine Slowing?

QUOTE: "Some people say you are going the wrong way, when it's simply a way of your own."

MARKET PULSE Shanghai Composite Index fell 1 % , intra-day low of 5.1 %. It fell 8.5 % on Mon. EVENTS: U.K. GDP, Sweden retail sales and Italy business confidence; Yanis Varoufakis divulged details on how Greece could sneak out of the euro French President Hollande -" run again in 2017 elections if unemployment falls" U.S. central bankers will begin their two-day meeting on Tuesday in Washington Gold's dropped 16 % over the past year as investor holdings shrank Gold: Citigroup Inc. lowered its three-month forecast on Monday A rout in Chinese shares most in 8 years Monday is probably also paring gold demand Move to strip Rajan of control over India rates faces backlash Govt expects to raise 16b INRs from Power Finance divestment Banking system liquidity is expected to remain comfortable A shortfall in India's Jun-Sep rains has narrowed to 4 % below normal from 8 % INDIAN INR MARKETS INR 1-month forwards gain 0.1% to 64.48 per USD USD/INR's 14-day RSI at 62 and falling USD/INR Pivot point at 64.1229 USD/INR support at 64.0408, 63.9117 and 63.7005 USD/INR resistance at 64.2520, 64.3341 and 64.5453 INR rises 0.1% to 64.1125 per USD 1-month implied volatility climbs 3 bps to 6.60%; avg for past 12-months is 6.6950% FACTORS Junior Finance Minister Sinha : govt will ensure RBI autonomy in monetary policy Global investors bought net $6.7m of Indian stocks on July India leading stock index Sensex fell 2% yesterday Move to strip Rajan of control over India rates faces backlash Govt expects to raise 16b INRs from Power Finance divestment Banking system liquidity is expected to remain comfortable A shortfall in India's Jun-Sep rains has narrowed to 4 % below normal from 8 % FOREIGN EXCHANGE MARKETS USD/JPY +0.21% at 123.51 (range 123.08-123.53) EUR/USD -0.13% at 1.1074 (range 1.1073-1.1100) AUD/USD +0.34% at 0.7294 (range 0.7257-0.7311) USD/CAD -0.15% at 1.3018 (range 1.3015-1.3043) GBP/USD +0.01% at 1.5560 (range 1.5554-1.5573) USD/CHF -0.12% at 0.9616 (range 0.9605-0.9628) U.S. Treasuries fall across curve, with 10-year yield rising 2 bps to 2.243% Brent crude declines; gold and copper advance FACTORS Shanghai Composite Index fell1 % , intraday low of 5.1 %. It fell 8.5 % on Mon. EVENTS: U.K. GDP, Sweden retail sales and Italy business confidence; Yanis Varoufakis divulged details on how Greece could sneak out of the euro French President Hollande -" run again in 2017 elections if unemployment falls" GOLD MARKETS Gold spot flat at $1,094.77 after dropping 0.5 % on Monday, Gold last week fell to $1,077.40, the lowest since February 2010 Gold Decembe Futures declined 0.2 % to $1,094.30 Most-active futures fell 4.1 % last week, to $1,073.70 on Fri, (2010.low) Silver spot rose 0.5 % to $14.6375 and was at $14.6071. FACTORS U.S. central bankers will begin their two-day meeting on Tuesday in Washington Gold's dropped 16 % over the past year as investor holdings shrank Gold: Citigroup Inc. lowered its three-month forecast on Monday A rout in Chinese shares most in 8 years Monday is probably also paring gold demand