Volatility rules the markets, but volume is only 'moderate'. Markets gaped down on the opening bell and have sea-sawed sideways throughout the morning while WTI oil has dropped almost 4 points. Weak manufacturing data in China fueled investors' worries about the world's second-largest economy. Which showed activity in August had slipped to a three-year low
Here is the current market situation from CNN Money
North and South American markets are sharply lower today with shares in U.S. off the most. The S&P 500 is down 2.04% while Brazil's Bovespa is off 2.01% and Mexico's IPC is lower by 1.30%.
$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 (AP) — A strong dollar and China's economic slowdown dragged growth at U.S. factories to the lowest level since May 2013. The Institute for Supply Management reported Tuesday that its manufacturing index slid to 51.1 last month from 52.7 in July.
It was the second straight drop; economists had been expecting the index to rebound modestly in August. Anything above 50 signals growth. Growth fell in production, employment and exports. Raw materials prices dropped for the 10th straight month. The index from a trade group of purchasing managers is down from 58.1 last August.
The report suggests that a strong dollar and slowing growth in China and other foreign markets may be taking a toll on U.S. manufacturers and perhaps the overall American economy. The rising dollar makes U.S. goods more expensive in foreign markets. Two surveys released Tuesday showed that Chinese manufacturers continue to struggle.
(Reuters) - Wall Street slumped on Tuesday, pushing all three major indexes into negative territory for the year, after weak factory data from China heightened fears of a slowdown in the world's second-largest economy and its effect on global growth.
MEXICO CITY (Reuters) - Mexico's government withheld hundreds of millions of dollars inÂ tax refunds owed to Procter & Gamble, Unilever, and Colgate combined as it sought to coax them and other multinationals to pay more income tax locally, according to people close to the talks.
LONDON (Reuters) - An OPEC publication written by the exporter group's public relations team helped oil prices jump and prompted speculation over a possible shift in output policy - to the bafflement of some OPEC insiders.
LONDON (Reuters) - China's giant manufacturing industry contracted and euro zone and U.S. growth eased in August in data published on Tuesday, while the International Monetary Fund cut its forecast for world growth this year.
SHANGHAI (Reuters) - Investigations by Chinese authorities into wild stock market swings are spreading fear among China-based investors, with some unsure if they are simply helping with inquiries or actually under suspicion, executives in the financial community said.
LONDON (Reuters) - Global factory activity expanded at its weakest pace in just over two years last month, even though discounted prices did drive a modest upturn in new orders, a business survey showed on Tuesday.
For the last few years, US equity traders have become conditioned to expect the miraculous arrival of some heavy-handed levitation in stock markets as 330pmET rolls by. This became ubiquitous enough to inspire a Twitter account. Well, it appears the Chinese have learnt a thing or two from the American manipulators... behold China's 2pm Ramp Capital at work.
As Bloomberg reports,
Afternoons in the Chinese stock market have turned into a waiting game for the state-backed funds to arrive.
Over each of the past four days, China's SSE 50 Index of large-capitalization companies has rebounded by an average 6.4 percent in late trading from session lows.
The gauge surged 15 percent over the four-day period, its biggest rally since 2008 and twice the 8.1 percent gain by the Shanghai Composite Index. The SSE 50 climbed 0.9 percent at the close on Tuesday, erasing an earlier loss of 4.8 percent.
The rallies are driven by government-backed funds buying shares to stabilize the market before a World War II victory parade on Thursday, according to IG Asia Pte.
Sadly - for the Chinese manipulators - unlike in 'Murica, where any momentum is good momentum, the 'burned' ...
BRUSSELS (Reuters) - U.S. law firm and class action specialist Hausfeld launched a platform on Tuesday to help pursue claims against Google, posing a potential headache for the world's No. 1 Internet search engine amid its regulatory troubles in Europe.
BEIJING/SHANGHAI (Reuters) - Activity in China's factory sector shrank at its fastest rate in at least three years in August as domestic and export orders tumbled, hitting global markets and increasing fears that the world's second-largest economy may be heading for a hard landing.
OTTAWA (Reuters) - The Canadian economy shrank again in the second quarter, putting the country in recession for the first time since the financial crisis, with a plunge in oil prices taking a toll as business investment fell and inventory accumulation slowed.
WASHINGTON (Reuters) - U.S. factory activity hit a more than two-year low in August as manufacturers struggled with a strong dollar, weak global demand and the lingering effects of deep spending cuts in the energy sector.
The headlines say construction spending grew. The backward revisions make this series very wacky - but the backward revisions this month were upward making the data better than the headline view. Our view is that if the data is correct - this was another strong growth month.
Perhaps the greatest nightmare for investors in a commodity stock is that the commodity in question goes the way of coal. After more than a century of dominance in the U.S. and abroad, coal appears to have entered into a structural decline. The EIA and others see coal export volumes declining, domestic U.S. demand remaining questionable, and intense competition from natural gas continuing.
A funny thing happened on the way to the graveyard for coal companies though - one of the industries greatest detractors, George Soros, appears to be stepping in as a supporter.
Soros, whose $24 billion fortune is built on successful trading, appears to have purchased several million dollars' worth of stock in coal producers Peabody and Arch Coal according to filings reviewed by Britain's The Guardian newspaper. Thermal coal has been hit hard by shifting utility company preferences for other power sources, while metallurgical has been hammered by the downturn in China which has hit demand for steel and other buildin ...
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