Europe in the green: Stoxx 50 +0.6%, Germany +0.8%, France +0.6%, Italy +0.4%, Spain +0.6%, U.K. +0.6%. US closed red: Dow -0.7% to 12647. S&P -0.9% Crude -2.37% to $83.95. Gold –1.32% to $1568.15.
Gold used to be a safe-haven, but it increasingly being propped by central banks. If not for the gold bar/coin buying frenzy and central bank demand, the collapse in industrial and jewelry demand may have led to a very different price path for gold post 2008. (FT)
The world is trapped in a scary limbo. China and the other emerging powers are wary of taking a leadership role, but the west is declining. The net result then, is that nobody is in charge; it is an unstable “G-zero” world. – Merrill Lynch via CNBC
More slowdown news from China: import growth for processing trade (i.e. imported components that are assembled into finished goods for export) fell to -1.9% y-o-y in June from 7.3% in May. China’s second quarter GDP release is due this Friday. (FT)
In some much needed good news, Sebi has granted MCX-SX [stockquote]MCX[/stockquote] permission to deal in equity and equity futures & options, interest rate futures and wholesale debt segments subject to a few conditions. (ET)