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10Aug2015 Pre-Market Commentary: Market Futures Up, Oil Down U.S. Dollar Down

Written by Gary

Morning U.S. stock futures index has risen significantly in part that the Chinese stock market didn't experience a 'Black Monday' as many had feared. The oils have clawed off their lows of last week, but remain very near the lows from the beginning of this year. The U.S. dollar has fallen off it highs and is trading sideways. The markets are expected to gap up at the opening.


Here is the current market situation from CNN Money

European markets are mixed today. The CAC 40 is up 1.46% while the DAX gains 0.68%. The FTSE 100 is off 0.46%.

What Is Moving the Markets

Here are the headlines moving the markets.

Weak China Data Fuels Rise in Global Stocks

Global stocks mostly rose, with the Dow poised to rebound from its longest losing streak in four years. Disappointing economic data in China provided the fuel for gains in stocks across the globe.

GoldCore Gold's Artificial Lows - Price Surge Coming

  • With gold languishing near deep secular lows, its technicals look hopelessly broken.
  • Sentiment is off-the-charts bearish, with traders universally convinced gold is doomed to spiral lower indefinitely.
  • But gold's weakness this year is very deceiving, as it wasn't the product of global fundamental supply-and-demand forces

    Gold in USD - 1 Year

    • Extreme record shorting by American futures speculators spawned these artificial lows
    • Gold's imminent short-covering rally should be the largest ever, coming from record extremes

      Gold in USD â€" 1 Year

      This morning, gold is 0.1% higher to $1,096 per ounce. Silver is up 0.74% to $15.02 per ounce.

      Platinum and palladium are 0.74% and 0.5% higher to $973 and $607 per ounce respectively.

      Gold's Artificial ...

Buffett says another big deal unlikely soon after Precision buy

(Reuters) - Warren Buffett's Berkshire Hathaway Inc is unlikely to undertake another big acquisition in the next 12 months, Buffett said on Monday, after the company's $37.2 billion deal to buy Precision Castparts Corp - its biggest ever.

U.S. inflation temporarily 'very low,' says Fed's Fischer

NEW YORK (Reuters) - U.S. inflation is only temporarily "very low" due in part to commodity prices, while the U.S. economy has nearly achieved full employment, Federal Reserve Vice Chairman Stanley Fischer said on Monday.

History Of Discount Window Stigma

by Liberty Street Economics

-- this port authored by Olivier Armantier, Helene Lee, and Asani Sarkar

In August 2007, at the onset of the recent financial crisis, the Federal Reserve encouraged banks to borrow from the discount window (DW) but few did so. This lack of DW borrowing has been widely attributed to stigma - concerns that, if discount borrowing were detected, depositors, creditors, and analysts could interpret it as a sign of financial weakness. In this post, we review the history of the DW up until 2003, when the current DW regime was established, and argue that some past policies may have inadvertently contributed to a reluctance to borrow from the DW that persists to this day.

Frontrunning: August 10



Grim China data keeps stimulus hopes alive (Reuters)

Berkshire Hathaway to Buy Precision Castparts for About $37 Billion (BBG)

Greece, lenders in final push to seal new bailout (Reuters)

Greece nears €86bn accord with creditors (FT)

Quantitative Easing With Chinese Characteristics Takes Shape (BBG)

Oil Futures Signal Weak Prices Could Last Years (WSJ)

Drop in long-term investment hinders eurozone recovery (FT)

Two shot in Ferguson amid standoff between police, protesters (Reuters)

Industry, States Set to Fight EPA Greenhouse Gas Rules (WSJ)

Russian Workers Vie With Greeks in Race to Productivity Abyss (

Futures higher as Dow seeks to break seven-day losing streak

(Reuters) - U.S. stock index futures were higher on Monday as the quarterly earnings season winds down and poor data out of China boosted hopes for additional stimulus from Beijing.

Alibaba to Buy 20% Stake in Electronics Retailer

Alibaba said it would pay 28.3 billion renminbi, or about $4.6 billion, to take a stake in Suning, a Chinese consumer electronics retailer.

Chinese Stocks Soar On Terrible Economic Data; US Futures Levitate; Brent Drops To 6 Month Lows

Following last week's bad news for the economy (terrible ADP private payrolls, confirmed by a miss in the NFP) which also resulted in bad news for the market which suffered its worst week in years, many were focused on how the market would react to the latest battery of terrible economic news out of China which as we observed over the weekend reported abysmal trade data, and the worst plunge in Chinese factory prices in 6 years. We now know: the Shanghai Composite soared by 5%, rising to 3,928 and approaching the key 4000 level because the ongoing economic collapse led Pavlov's dog to believe that much more easing is coming from the country which as we showed last night has literally thrown the kitchen sink at stabilizing the plunge in stocks.

And while China has adopted most US market manipulation practices, it had yet to levitate stocks on Merger hopes: this was just the catalyst in the overnight ramp. As Reuters reported, trading in major shipping stocks, including China Shipping Development, China Shipping Container Lines and China COSCO Holdings, was suspended on Monday pending announcements, adding to speculation they may be merged. It remains to be seen if any news will emerge or if the market regulators merely halted them just to create the illusion of an imminent merger. For now the "news pending" gimmick worked: the SHCOMP closed at the highs with 300 stocks ending at the 10% limit up.

Just to show how desperate China is to draw in mom and pop yet again, the Shanghai Securities News reported on Friday that "close to 300 China funds that oversee more than 1 trillion yuan ($161 billion) are waiting to enter the stock markets at any time ...

China Shares Post Biggest One-Day Gain in a Month

Stocks in China posted their biggest one-day gain in a month after weak economic data lifted expectations Beijing would boost spending and continue to prop up the market by buying shares.

Greece, lenders in final push to seal new bailout

ATHENS (Reuters) - Greece and international creditors sought to put final touches on a multi-billion euro bailout accord on Monday to keep the country financially afloat and meet an important debt repayment to the European Central Bank within days.

Grim China data keeps stimulus hopes alive

LONDON (Reuters) - A deepening slowdown in demand in China took center-stage on Monday, boosting some stock markets on hopes of more policy stimulus even as it knocked commodity prices.

Monday Morning Musings

Shake Shack on deck for earnings post close

Supply and Demand Report 9 Aug

by Keith Weiner

Last week, we left off with this.

"Something is happening with gold…"

It began in Dec 2008. To understand it, it is necessary to understand two principles. The first is that gold is money and the dollar is credit, which currently has nontrivial value. A dollar is worth 28.4mg gold. To understand the second, let's look at how markets work at the mechanical level.

Regular readers of this Report know that we emphasize the bid and ask prices as separate values. The people and forces involved in the bid price are different from those involved in the ask price. This is critical in our definition and calculation of the basis and cobasis. You cannot just assume that there is a real price, somewhere between the bid and ask. That may be a working approximation during normal market conditions. But it could be badly misleading.

Suppose there is stress in the market, a crisis impending or active. The bid recedes, and can even withdraw entirely. For example, what if the US Geological Survey were to say that there will be an earthquake in Los Angeles, 15 on the Richter scale, and nothing taller than a dollhouse will be left standing? You would not find any lack of offers to sell real estate. But what is the price of a house in LA? There wouldn't be a bid in LA, and maybe not as f ...

Back to the future: Nokia prepares for mobile comeback

FRANKFURT/HELSINKI (Reuters) - Nokia is hiring software experts, testing new products and seeking sales partners as it plots its return to the mobile phone and consumer tech arena it abandoned with the sale of its handset business.

Apple Burns While Tim Cook Fiddles

Step up and use your own money to buy Apple shares, Tim Cook

Earnings Summary for Today

Earnings Calendar provided by Investing.com.

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To contact me with questions, comments or constructive criticism is always encouraged and appreciated:

gary@econintersect.com

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