Last update: Mon, 29 Aug 2016 01pm

Stocks and Bonds: World


Wall Street will fixate on a wave of US economic data next week, crested by payrolls data on Friday that could sway expectations about the timing of future interest rate hikes and spark volatility in record-high stock prices. Fresh data about employment and consumer confidence could help investors solidify expectations for a December interest rate hike from the US Federal Reserve, or lend weight to a minority of strategists predicting a rate rise as early as next month.

European equities have defied the gloom and doom predicted after Britain voted to leave the European Union, and record-high gains by stocks like Adidas and Just Eat suggest investors are looking for growth anywhere they can find it. As interest rates turn negative, economic growth slows and inflation remains stubbornly low, investors have turned to dividend-yielding stocks. And that has led them to companies that have market-beating earnings growth, are cash-rich or look like successful turnaround stories.
Stock markets in Saudi Arabia and Qatar partially recovered on Sunday from last week's losses, while other Gulf markets dropped in quiet trade and Egypt sank as the government was hit by a corruption scandal in the wheat industry.
Latin American bonds may be overvalued but funds dedicated to the asset class, overwhelmed by flows from investors gripped by a global hunt for yield, may have little choice but to continue buying them.
Japan-focused hedge funds may be ready to start nibbling at Tokyo shares again after suffering losses earlier this year by betting on a weaker yen. Though the outlook for the yen remains as murky as ever ahead of Bank of Japan and US Federal Reserve policy reviews, some fund managers think Japanese stocks are looking attractive again after tumbling 13 percent from January.
CITIC Securities Co Ltd, China's biggest brokerage, said on Wednesday its first-half net profit fell 58.0 percent, hurt by lower stock prices and a volatile stock market that made investors cautious and curbed their trading.
Carl Icahn said he did not attempt to sell his Herbalife Ltd stake, and had instead bought more shares in the health supplements maker, rejecting hedge fund manager Bill Ackman's claim that he had been offered some of Icahn's shares. Herbalife shares rose 4 percent in extended trading, reversing course after Icahn said he had bought 2.3 million shares on Friday.