Dow fails to hold above 200-day moving average — a key line in the sand for the blue-chip gauge

Liverpool vs Chelsea, UEFA Super Cup: Frank Lampard looks for big improvement as Reds return to Istanbul

Liverpool take on Chelsea in the UEFA Super Cup in Istanbul. Kick off is at 8pm and you can follow all the action in our live blog.

 

Teva’s stock tumbles toward 20-year low; Moody’s turns negative on drugmaker’s ‘junk’-rated debt

Shares of Teva Pharmaceutical Industries Ltd. TEVA, -10.37% tumbled 9.7% toward a 20-year low, after Moody’s Investors Service revised its outlook on the drug maker’s already "junk" credit rating to negative from stable. Trading volume was 31.7 million shares compared with the full-day average of about 20.4 million shares. Moody’s affirmed Teva’s Ba2 corporate family rating, which is two notches below investment-grade status. "The negative outlook reflects Moody’s concern over Teva’s persistently high leverage and large refinancing needs in light of its rising exposure to opioid-related litigation," Moody’s said. The rating agency said that while it believes Teva has sufficient liquidity to repay 2020 debt maturities, which is more than $2 billion. However, Moody’s doesn’t expect Teva to generate enough cash flow to repay the approximately $4.2 billion of debt maturing in 2021, so failure to refinance those maturities well in advance cut put further pressure on Teva’s rating. "Teva’s exposure to opioid litigation remains a key uncertainty, posing risk to its ability to refinance at attractive interest rates," Moody’s said. The stock, which is on track to close at the lowest price since November 1999, has tumbled 58.8% year to date, while the S&P 500 SPX, -2.83% has gained 13.8%.

European Economics Preview: France Business Confidence Data Due

Business confidence from France is due on Thursday, headlining a light day for the European economic news.

At 2.00 am ET, Statistics Norway releases industrial output data for June. Economists forecast production to grow 0.3 percent on month, the same rate as seen in May.

At 2.30 am ET, Bank of France is scheduled to issue business sentiment survey results. The confidence index is forecast to rise to 96 in July from 95 in June. The survey also shows GDP estimate.

At 3.00 am ET, consumer prices and foreign trade figures are due from Hungary. Inflation is expected to remain unchanged at 3.4 percent in July.

At 4.00 am ET, the European Central Bank is slated to issue monthly economic bulletin.

At 5.00 am ET, consumer prices and labor force survey results are due from Greece.

Franklin Templeton fund manager loses $1.8 billion in one day on Argentina bets: Financial Times

  • A star fund manager at Franklin Templeton loses nearly $1.8 billion in Monday's market slide in Argentina, according to the Financial Times.
  • Financial markets in Argentina are in turmoil after a surprise result in primary elections over the weekend.

A star fund manager at Franklin Templeton lost $1.8 billion on Monday due to the market slide in Argentina, according to the Financial Times.

Michael Hasenstab, a fixed-income fund manager, had several large positions in the Argentina bond market. The financial markets in the country plunged after a surprise result in primary elections. President Mauricio Macri, the center-right incumbent, lost by a larger-than-expected margin, raising concerns about populist leaders gaining control of the country.

Argentina's stock market lost more than 30% on Monday, and the Argentine peso also fell significantly.

Several funds run by Hasenstab had large positions in Argentine bonds, creating a cumulative loss of nearly $1.8 billion for the day, according to Financial Times calculations.

Franklin Templeton reported that it had roughly $715 billion in assets under management as of June 30. The company declined to comment.

Read the full story here.

Iraqis call for compensation after weapons depot blast

Baghdad urged to compensate for homes damaged by explosion that killed one person and injured 30 others.

    In Iraq, there are calls for compensation after homes were damaged by an explosion at a weapons depot.

    The Iraqi government has so far refused to say what caused Monday’s blast in Baghdad which killed at least one person and injured 30 others.

    Al Jazeera’s Natasha Ghoneim reports from Baghdad.

    Dow fails to hold above 200-day moving average — a key line in the sand for the blue-chip gauge

    The Dow Jones Industrial Average DJIA, -2.94% was fighting to maintain trade above its closely watched long-term trend line as stocks declined sharply in Wednesday afternoon trade. The Dow DJIA, -2.94% was down 760 points, or 2.9%, at 25,523, falling below its 200-day moving average at 25,585.34, according to FactSet data. Technical analysts view moving averages as gauges of bullish and bearish momentum in an asset, with a breach of the 200-day representing a shift in the long-term outlook for an asset. The Dow hasn’t closed below its long-term average since early June. Meanwhile, the broader market losses were gathering steam, with the S&P 500 index SPX, -2.84% and the Nasdaq Composite Index COMP, -3.03% spiraling lower in afternoon action, all down by at least 2.7%. The spark for the downbeat action on Wednesday was a Treasury market that was sending a recessionary signal, with the two-year Treasury yield and the 10-year Treasury rate TMUBMUSD10Y, -7.19% inverting–meaning the short-term debt yielded more than the longer-term note—usually signaling that a recession was in the offing in the next several months. Meanwhile, the U.S. 30-year Treasury bond TMUBMUSD30Y, -6.20% fell to a record low, reflecting dimming expectations for the long-term economic outlook.