Sketchers has "fallen below the price at which it started [its] current cycle," suggesting a drop further is possible, technical analyst Steve Miller writes. The stock has posted a 52-week low, trading 27% lower after the company released earnings below expectations.
A consortium headed by US private equity firm KKR has agreed to an acquisition of Taiwanese chemical producer LCY Chemical that values the latter at $1.56 billion. The purchase price is a 17.3% premium to LCY's share price when trading closed Friday.
The Bank of Japan says it is prepared to buy an unlimited amount of government bonds after rumors of a monetary-policy change sent yields surging. The central bank is trying to hold the yield on the 10-year bond at zero, but the policy speculation has sent the yield to 0.09%.
The Federal Reserve should suspend interest-rate increases to avoid a yield-curve inversion, says James Bullard, president of the Federal Reserve Bank of St. Louis. "Imminent yield-curve inversion in the US has become a real possibility," Bullard says.
The EU and South American trade bloc Mercosur are likely to complete negotiations on a free trade agreement in late August or early September, Argentine Foreign Minister Jorge Faurie says. Argentina, Brazil, Paraguay and Uruguay are the bloc's full members, while Venezuela has been suspended from the group.
Former US Commodity Futures and Trading Commission chairman Gary Gensler, now a Senior Lecturer at MIT Sloan School of Management, described the underlying cryptocurrency cash market as "a mess" during a US House Committee on Agriculture hearing, noting that Congress needs to establish who should regulate it. "The [Securities and Exchange Commission] has securities, the CFTC has derivatives, I think you want to debate what to do with the underlying market," he said.
China's yuan dropped to its lowest value in more than a year on foreign exchange markets and the US dollar lost value against the currencies of major US trading partners. Both declines followed the broadcast of an interview on CNBC in which US President Donald Trump said the US is at a disadvantage because of its strong dollar and that the yuan was "dropping like a rock."
The number of Americans filing for state unemployment benefits fell last week to a seasonally adjusted 207,000, the smallest number since December 1969, the Labor Department said. Economists surveyed by Reuters expected claims to rise to 220,000.
European credit is facing signs of increased bearish investor sentiment as the European Central Bank prepares to wind down a programme through which it has purchased $190 billion worth of corporate bonds in about two years. Fresh corporate debt has been less plentiful, spreads are expanding, and Societe Generale credit strategist Juan Valencia says, "The big issue for European credit investors is risk-reward -- there is too little upside and lots of downside."