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Asia and Europe fall sharply on Spain bailout fears; U.S. futures point lower on Spain and China growth concern.
International
Asia
● Asian stock indexes slumped today after a Chinese central bank advisor said that economic growth will slow, and after troubled regions in Spain sought bailouts from the government.
● The Nikkei slid 1.86 percent; the KOSPI fell 1.84 percent; the Shanghai Composite dropped 1.26 percent; the Hang Seng sank 2.99 percent; and Australia’s S&P/ASX 200 retreated 1.67 percent.
Europe
● European stock indexes today have fallen the most since April as Spanish regions seek bailouts from the government and amid renewed fears of a Greek default. Look for changes in the Vanguard MSCI Europe ETF (NYSEArca: VGK).
● Spanish bond yields rose to unsustainable highs after several regions were reported to ask the government for financial aid. Yields on benchmark 10-year notes rose 22 basis points to 7.49 percent. Look for the iShares MSCI Spanish Index Fund (NYSEArca: EWP) to fall.
● The euro fell to $1.2097—the lowest since June 2010. Check for movements in the CurrencyShares Euro Trust (NYSEArca: FXE).
Domestic
● U.S. stock futures pointed lower due to concern that Greece would not fulfill its bailout agreements, and on the comments from the Chinese central bank official pointing to slower Chinese economic growth.
Earnings
McDonalds
● 2nd Quarter - 11 a.m. ET
● Expected EPS = $1.38
● ETF Movements
Consumer Discretionary Select Sector SPDR (NYSEArca: XLY)
Texas Instruments
● 2nd Quarter - 5:30 p.m. ET
● Expected EPS = $0.39
● ETF Movements
iShares PHLX SOX Semiconductor Sector Index Fund (NYSEArca: SOXX)
Commodities
All commodities news is as of 8:00 a.m. ET.
Gold and Silver Dropped
● Gold fell 0.85 percent, or $13.40, to $1571.10. Expect decreases in the SPDR Gold Shares physical bullion ETF (NYSEArca: GLD).
● Silver slid 1.35 percent, or $0.37, to $26.94. Expect declines in the iShares Silver Trust (NYSEArca: SLV).
WTI and Brent Oil Sank
● The September contract for WTI crude oil slid 3.03 percent, or $2.78, to $89.05 per barrel.
● The September contract for Brent crude oil fell 3.01 percent, or $3.22, to $103.61 per barrel.
● Expect both the United States Oil Fund (NYSEArca: USO) and the United States Brent Oil Fund (NYSEArca: BNO) to decline as well.
Fund Flows
On Friday, July 20, 2012, the top ETF in nominal inflows was the SPDR Barclays Capital High Yield Bond (NYSEArca: JNK), with creations of $146.3 million. The top ETF in nominal outflows was the SPDR S&P 500 (NYSEArca: SPY), with redemptions of $736.5 million.
ETF Launches
None as of yet today
ETF Filings
None as of yet today
Economic Calendar
Domestic
● Chicago Fed National Activity Index - 8:30 a.m. ET
Asia/Pacific
China
PMI Flash Mfg Index - 10:30 p.m. ET
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