Futures Down - Any new news?

Discussion in 'Trading' started by Cdntrader, Oct 18, 2007.

  1. dont see much other than Japan off 300 pts but ES is down 6 from earlier.

    Saw that hit right before the futs selloff. That hit 21:11 EST on my deal. But Taiwan isn't trading much lower and for some reason Hong Kong HSI and HHI.HK futs aren't open yet today (they should've opened now). Trading holiday?

  3. yes holiday in HK.

  4. Shanghai is open now. dwn 1%
  5. Bowgett


  6. this technical retracement it's an acknowledgment of market recent extended rally as now euphoria will fade soon and most uptrends cut short with upswings and rallies sold into. typically that's what happens while mkt decides how and where to pattern the crest. may print it higher following another leg up or around here, all before inevitable correction begins.

  7. heh.. didn't we just have a correction? [2 months long, from july 23 -> sep 18th] ???

    I do agree its not looking good if this mkt continues to move down next week. We're due for a move up a little higher. A 1585 test is in order.
  8. WinSum


    G7 Meeting Announcement tomorrow,

    trading ahead of the news
  9. cstfx



    Rhinebridge Commercial Paper SIV May Not Repay Debt (Update1)

    By Neil Unmack

    Oct. 18 (Bloomberg) -- Rhinebridge Plc, the IKB Deutsche Industriebank AG structured investment vehicle that has lost about half its value, is unlikely to repay all its debt.

    Rhinebridge suffered a ``mandatory acceleration event'' after IKB's asset management arm determined the SIV may be unable to pay back debt coming due, the Dublin-based fund said in a Regulatory News Service release. Rhinebridge had $1.2 billion in commercial paper outstanding as of Oct. 5, according to Fitch Ratings.

    Rhinebridge, Cheyne Finance Plc and other SIVs, which borrow from the short-term commercial paper market to fund purchases of asset-backed securities, have struggled as investors retreated from all but the safest debt. SIVs have dumped about $75 billion of assets as a result, prompting U.S. Treasury Secretary Henry Paulson to organize an $80 billion bank-run fund to buy some of the securities.

    In August, Rhinebridge had to sell $176 million of its assets to cover obligations, and as much $320 billion of holdings by SIVs worldwide may be dumped if the market doesn't improve.

    Rhinebridge said Oct. 12 that it breached a ``major capital loss test'' because its net assets fell to less than half the amount it owes holders of its subordinated capital notes after repaying senior debt. The company had five business days to remedy the breach before the enforcement event took place.

    SIVs have different rules to protect investors and allow the fund time to recover from a market slump. An enforcement action is typically the last step for a fund, and is irreversible.

    #10     Oct 18, 2007