Global Daily: Cooked by State Capitalism

The Powell-induced equity rally took a breather yesterday as the S&P500 closed 0.43% lower, the NASDAQ 0.22% lower and the EuroStoxx 50 0.81% lower. Asian equities – perhaps still playing catchup from Powell’s Jackson Hole speech – had traded higher earlier in the day. China’s CSI300 closed up more than 2% and the Hang Seng gained 1.94% with notable lifts in rare-earth stocks after Beijing published new rules to tighten oversight of production and trading of the geopolitically-sensitive minerals. South Korea’s KOSPI gained 1.3% ahead of a Monday (US time) meeting between South Korean President Lee Jae-myung and US President Trump (more on that below).