Last February we described some of the "horror stories" of corporate leverage that emerged as a result of China's unprecedented offshore M&A spree that emerged in 2015 and raged through most of 2016: after all, with over $100 billion in foreign acquisitions, the bulk of the funding would inevitably come from debt. These were some of the examples we highlighted:
US equity futures were marginally in the red, while Asian markets rose and European stocks dropped. WTI oil rose 0.6% to $42.79 as some suggest the time to go long has arrived; oil tumbled 2.3% in the previous session. The Bloomberg Dollar Spot Index fell 0.1 percent.
Here are the main market developments while you were sleeping.
Following President Trump's somewhat ominous 'thanks for nothing in North Korea' tweet last night, somewhat ominously, last night...
While I greatly appreciate the efforts of President Xi & China to help with North Korea, it has not worked out. At least I know China tried!
— Donald J. Trump (@realDonaldTrump) June 20, 2017
Perhaps suggesting: first that his 'good friend' Xi was not much help after all; and second, he will act unilaterally.
In an eventful overnight session which saw a historic transition in Saudi Arabia, an unexpected Republican victory in the Georgia Special Election, China's inclusion in the MSCI EM index and Travis Kalanick's resignation, S&P futures continued to fall, alongside stock markets in Asia and Europe, while oil prices extended their drop despite a larger than expected draw reported by API on Tuesday.