Market Lab Report - Premarket Pulse 8/11/15
Futures are down sharply on the surprise move by China’s central bank by devaluing its tightly controlled currency, triggering the largest one-day loss for the yuan in two decades, in an effort to boost flagging exports and spur growth in the world’s second-largest economy. China's central bank stressed the move was a one-off depreciation but seems suspect as China’s Real Effective Exchange Rate (REER), as calculated by the [Bank for International Settlements], has risen by some 14% in the past year making today’s 2% drop relatively small. Given China's flagging economy, analysts are concerned it could be the start of a new currency war which could delay the Fed from hiking interest rates.
Wearable camera maker GPRO had a pocket pivot yesterday. ROE 59.4%, earnings and sales are soaring, institutional sponsorship has grown over the last 3 quarters. GPRO is trading well off its highs so could experience some overhead resistance as it makes its way higher.
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