Premarkets up fractionally as the oils climb steadily and the U.S. Dollar weakens further. Euro zone economy leading the way as China struggles and the German DAX has only been this extended relative to its 200-day moving-average once in history... March 2000 - and that did not end well.
Hard to believe it but according to the BLS, the Consumer Price Index (CPI-U) year-over-year inflation rate is now zero - and this was despite rising energy prices month-over-month
Here is the current market situation from CNN Money
European markets are higher today with shares in Germany leading the region. The DAX is up 0.13% while France's CAC 40 is up 0.11% and London's FTSE 100 is up 0.05%.
According to the BLS, the Consumer Price Index (CPI-U) year-over-year inflation rate is now zero - and this was despite rising energy prices month-over-month. The year-over-year core inflation rate rose from 1.6% to 1.7%, and continues to be well under the targets set by the Federal Reserve.
WASHINGTON (Reuters) - U.S. consumer prices rebounded in February as gasoline prices rose for the first time since June, and there were also signs of an uptick in underlying inflation pressures, which could keep a June interest rate increase on the table.
LONDON (Reuters) - Euro zone businesses ramped up activity this month, just as the European Central Bank starts printing money to spur growth and inflation, while a slowdown among Chinese factories has fueled calls for more stimulus there.
LONDON (Reuters) - Federal Reserve policymaker James Bullard said on Tuesday that zero percent interest rates were no longing appropriate in the United States, and that a rate hike in the summer would still leave policy extremely accommodative.
BEIJING (Reuters) - Activity in China's factory sector dipped to a 11-month low in March as new orders shrank, a private survey showed, signaling persistent weakness in the world's second-largest economy that will likely fuel calls for more policy easing to support growth.
Moments ago, a Lufthansa Germanwings Airbus A320, flight 4U9525, on a Barcelona to Dusseldorf route, was reported to have crashed in the area of Digne, in the Alpes-de-Haute-Provence in southern France, an area which French president Hollande said is "very difficult to access." According to Plane Finder, the Germanwings plane, callsign D-AIPX, was a 24 year old A320 and part of the Germanwings fleet. Germanwings is a low-cost affiliate of German airline Lufthansa, which was created in 1997. Tuesday's Airbus A320 crash has been the first accident in the history of Germanwings.
French Interior Minister is heading to the crash site, Le Monde reported. The information was also confirmed by the local authorities of the Alpes-de-Haute-Provence.
UPDATE CRASH The aircraft was delivered on 1991-02-05 to Lufthansa http://t.co/pFdVDioV0e pic.twitter.com/KqMiU7ctNq
â€" AirLive.net (@airlivenet) March 24, 2015
Last few positions of the @germanwings flight plotted on a map pic.twitter.com/UX5G1gYGX7
â€" Plane Finder (@planefinder) March 24, 2015
According to initial press reports the plane had 142 passengers on board, with another 6 in the flight crew.
It appears the flight had sent out a distressed signal at 9:4 ...
SAN FRANCISCO (Reuters) - A landmark Silicon Valley sex bias case that has forced venture capital firm Kleiner Perkins Caufield & Byers to air awkward details about its operations goes to closing arguments on Tuesday after four weeks of testimony.
It is a centrally-planned "market" and everyone is merely a bystander. Last night, following a dramatic China PMI miss, which as previously reported tumbled to the worst print since early 2014 and is flashing a "hard-landing" warning, the Shanghai Composite first dipped then spiked because all a "hard-landing" means is even more liquidity by the PBOC (which as we suggested a month ago will be the last entrant into the QE party before everyone falls apart). Then, this morning, a surprise beat by the German (and Eurozone) PMI was likewise interpreted by the algos as a catalyst to buy, and at this moment both European stock and US equity futures are their session highs. So, to summarize, for anyone confused: both good and bad data is a green light to buy stocks. In fact, all one needs is a flashing red headline to launch the momentum igniting algos into a buying spasm.
Some more on the just announced Eurozone PMI numbers:
The Euro area flash composite PMI rose by a robust 0.8pt to 54.1 in March, above our and consensus expectations of a more modest gain (Cons: 53.6, GS: 53.8). The expansion in the composite PMI was driven by similar robust gains in both the manufacturing and services subcomponents. The German flash composite PMI increased notably, while its French counterpart eased slightly after a strong gain in February.
The expansion in the Euro area flash composite PMI was driven by similar stronger-than-expected increases in both the manufacturing PMI and the services PM; the manufacturing PMI showed a 0 ...
LONDON (Reuters) - Brent crude reversed early losses to trade back towards $57 a barrel on Tuesday, as a weaker dollar overshadowed signs of slowing growth in China and Saudi Arabian oil production close to an all-time high.
LONDON (Reuters) - The euro rose and European shares edged up on Tuesday, responding to signs the euro zone economy is gaining momentum, while a slowdown in factory activity in China kept oil and commodities-linked assets under pressure.
LONDON (Reuters) - A U.S. law firm is asking Tesco shareholders to join a group that wants to bring a lawsuit and seek billions of pounds in compensation for losses relating to the British retailer's overstatement of profit last year.
........Originally posted March 18th - Written by Nathan McDonald for Sprott Money
Stocks are pulling back ahead of a greatly anticipated FED meeting. Investors are holding their breath as they wait for news from Janet Yellen on whether or not the FED will give more indication of future interest rates.
It is widely anticipated that the FED will remove a key word "patient" from its statements. This is in reference to the timing of an interest rate hike and the FED's previously dovish stance to raise them.
The market believes that the FED will begin more strongly indicating that a hike in rates is on the horizon. Of course, levels will still be historically low, even if a rate hike was to occur, as they are now resting at 0.25%.
That is a big "if". Although the FED is likely just jawboning and pandering to Wall Street, they themselves have said time and time again that they would only raise interest rates if the economy was recovering and firing on all cylinders. Clearly, despite what the mainstream media would have you believe, it is not.
One of the key indicators that the FED bases economic recovery on is the housing sector. The new American Dream as some call it, others consider it a nightmare.
PARIS (Reuters) - RwandAir, the national flag carrier of the Republic of Rwanda, has signed a memorandum of understanding for two A330 aircraft, European planemaker Airbus said on Tuesday, in a deal worth around $500 million based on list prices.
The only good news in the week's carload report was Norfolk Southern's strong intermodal volume growth. In the week ended March 14, intermodal volumes grew 8.1%, compared to 0.7% in the week ended March 7. Union Pacific's petroleum products carloads declined 26% during the week ended March 14. Carloads of farm products other than grain, food products, primary forest products, chemicals, automobiles and equipment were in the positive during the week. Now that the labor contract negotiations between the ILWU and PMA have ended, Union Pacific's intermodal carloads have also begun to recover, with a 5% increase during the week.
Once RBS gets rid of these shares, its stake in CFG will decline to no more than 49.3%. This brings RBS (which is majority-owned by the British government) one step closer to its mandate of focusing on its retail and commercial banking operations in U.K. The announced stake sale will be facilitated by Morgan Stanley, Goldman Sachs, JPMorgan and Citigroup.
Shares of software vendors SAP SE, Symantec and Salesforce.com appreciated sharply during the week ended March 20th. Shares of European major SAP led the rally with a 7% gain Monday through Friday, buoyed by investors' and customers' positive response to SAP's recent moves into the Internet of Things. Salesforce's shares appreciated by 5% during the week, while Symantec's shares gained 4%, in line with the 4% uptick in the Dow Jones U.S. Software Index. In comparison, the broader S&P 500 gained 3% Monday through Friday.
Fifteen years ago today the Nasdaq stock market index had just come off an all-time high when it suddenly declined a jaw-dropping 33% in the ensuing three weeks. Then, like right now, the Nasdaq Composite Index is just below that all-time high, having just climbed back up that mountain after fifteen years, and many market observers feel we are overdue for a correction. Moreover, this comes just as we are entering that curious time frame of April 15th - 22nd, which has historically been one of the most volatile and historically significant times throughout American history. Fifteen years ago, parents' retirement and college savings were crashing in value, having lost a third of their wealth in three weeks just as taxes were due and their high school seniors were deciding which college to attend. Sound familiar? Things can change quickly. Are you prepared?
Based on the latest news, Chanel, the world leading well-known luxury brand, decided to cut prices by around 20% in the China mainland market and raise prices by same range in European markets starting April 8. As a top luxury brand which always bases its marketing strategy on higher price to establish "nobility", this decision will doubtless bring about reform in Chinese luxury market.
Econintersect wants your comments,
data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.
Econintersect Live Market
Print this page or create a PDF file of this page
The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.
Take a look at what is going on inside of Econintersect.com