Positive opening for the markets immediately turned down into negative territory. Investor unease is the most likely culprit as oil is slipping fractionally and the U.S. Dollar is rising again. A 'Grexit' is still a real possibility as China's financial woes continue to disconcert many financial centers.
The health of the markets is mixed and wary investors need to closely inspect the indexes below.
Here is the current market situation from CNN Money
North and South American markets are mixed today. The Bovespa is up 0.25% while the IPC gains 0.16%. The S&P 500 is off 0.18%.
$NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% - 55%. Dropping below 40%-35% signals serious continuing weakness and falling averages.
WASHINGTON (Reuters) - U.S. economic growth is set to rebound in the second quarter, but a strong dollar could slow momentum and push the first interest rate hike from the Federal Reserve to later this year, a Reuters poll found.
ATHENS/BRUSSELS (Reuters) - Greece can scrape together enough cash to meet its payment obligations until June, euro zone and Greek officials said on Wednesday, playing down fears of an imminent default as hopes receded of a deal with its creditors to release fresh aid.
BERLIN/FRANKFURT (Reuters) - Deutsche Bank co-chief executives Anshu Jain and Juergen Fitschen met with German finance minister Wolfgang Schaeuble late on Monday, sources close to the matter said on Wednesday, ahead of a decision on a major restructuring.
Moments ago McDonalds reported its latest sales numbers which were basically atrocious, worse than usual, and missed across the board. From BBG:
MCD MARCH TOTAL COMP SALES DOWN 3.3%, EST. DOWN 2.1%
MCD MARCH US COMP SALES DOWN 3.9%, EST. DOWN 3.0%
MCD MARCH EUROPE COMP SALES DOWN 2.9%, EST. DOWN 1.6%
MCD MARCH APMEA COMP SALES DOWN 7.3%, EST. DOWN 4.5%
APRIL GLOBAL COMPARABLE SALES ARE EXPECTED TO BE NEGATIVE
At this point the operational challenges facing the company are clearly unfixable in its current iteration which is broken beyond merely a CEO switch, and not even a "buy 1 Big Mac, get 3 Big Macs (and Joseph A Banc suits) free" strategy will fix the ailing fastfood maker, whose secular collapse is best captured by the charts below.
So what does the stock do? The algos are "luvin' it."
Why? Because with the company clearly facing an operating dead end it will have no choice but to "grow" earnings through even more buybacks.
Following comments from the Swiss National Bank, reducing the group of sight deposit account holders that are exempt from negative interest rates, has sent Swissy tumbling...
The rush out of swiss francs reignites
As Bloomberg reports,
Swiss National Bank says its reduced the group of sight deposit account holders that are exempt from negative rates.
Says negative rates to apply to sight deposit accounts held at SNB by enterprises associated with federal govt, including pension fund PUBLICA.
Accounts will have minimum exemption threshold of CHF10m, to which negative interest does not apply.
Accounts of cantons of Geneva and Zurich, City of Zurich to be wound up.
Account of SNB pension fund will also be subject to negative rates.
Only sight deposit accounts to be exempt from negative interest will be those of central Federal Administration and the compensation funds for old age and survivors' insurance, disability insurance and fund for loss of earned income.
One wonders if The SNB has licensed Sarao's "spoofing" algo... EURCHF weakness (+100pips to 1.036) seems to imply the SNB's hope is that Sight Deposits are reduced (as every central bank hopes... spend don't save)...
With talks between Greece and its creditors expected to go mostly nowhere in Riga later this week, and with speculation about an energy deal between Athens and Gazprom looking less like speculation and more like reality with each passing day, we've suggested that it's only a matter of time before Russia officially becomes Greece's White Knight by providing a cash advance on the gas deal.
Greece has recently taken to seizing local government cash reserves to pay the bills (including pensions and salaries) and with the ECB reportedly considering 50% haircuts on collateral pledged for ELA by Greek banks (the same Greek banks which FinMin Varoufakis said yesterday were "adequately capitalized"), Athens could sure use the cash, and as we enjoy pointing out, it's an all-around win for the Kremlin as cash given to Greece will be used to make debt payments to the IMF which is set to deliver a â‚¬2 billion tranche of aid to Kiev in June, and that bailout funding will promptly be funneled right back to Russia via payments to Gazprom.
As a reminder, here's a map of the Turkish Stream pipelineâ€¦
...and here's the complete payment schedule for Greece:
Econintersect: This leading index is now forecasting growth at 1.5% over the next 6 months - statistically the same as January (which was released at the same time as February). Note that this index has not been published since December 2014 as parts of its methodology were revised. A review of all major leading indicators follows - and no leading index is particularily strong.
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