econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



08Sep2015 Market Close: U.S. Markets Rallied Hard And Closed Up Over 2%, Oil Steady, U.S. Dollar Showing Weakness, After-markets Sliding Fractionally

Written by Gary

DOW finishes up 2.4% higher (+390) and the SP500 up 2.5% higher while the Nasdaq Closed up 2.84%. The big question now is what happens tomorrow? There is a 50-50 chance the markets could move in ether direction and there is not enough room here to state the salient reasons.

Todays S&P 500 Chart

I am going out on a limb and 'guess' down, but closing near the unchanged line, moderate volume and no volatility to speak of. Investors are going to now take a wait and see approach to Mr. Markets ongoing confusion.

The Market in Perspective

Here are the headlines moving the markets.

Fed should wait with raising rates: World Bank economist

WASHINGTON (Reuters) - The U.S. Federal Reserve should hold off on raising interest rates until the global economy is more stable, the World Bank's chief economist said in an interview with the Financial Times published on Tuesday.

It Really Is As Simple As That

Six years after we first explained the only thing that matters for this "market", JPMorgan finally figured it out, and in doing so proudly joined the ranks of the "tinfoil hat, conspiracy theorists" unable to grasp the finer nuances of the Magic Money Tree theory.

Now, who else can't wait for the Fed's first rate hike in nearly a decade?

Wall St. jumps 2 percent; eyes on China

(Reuters) - U.S. stocks rallied more than 2 percent in the late afternoon on Tuesday, bouncing after losses last week and as hopes increased for more stimulus measures from the Chinese government.

JPMorgan Hires Tech Banker Greg Mendelson From Bank of America Merrill Lynch

At JPMorgan, Greg Mendelson will focus on advising both tech services companies and private equity firms.

Goldman Warns, VIX "Is Pricing In A Lot Of Economic Damage"

If the market is right, Goldman warns that current cross-asset-class volatility appears to be pricing in a lot of economic damage. As they note, VIX doesn't just trade the economy; it also has a strong and often humbling element of risk sentiment baked in.

Goldman Sachs explains...

Mapping VIX levels back versus the economy ... weaker data = higher VIX

Understanding the interplay between volatility and the economic cycle has been a core theme underlying our volatility framework. Although the VIX is often considered a "sentiment indicator", a regression of average calendar month VIX levels on U.S. consumer spending, manufacturing and employment data explains 59% of the variability in VIX levels back to 2000. Updating our model to include last week's ISM and employment data suggests that if the VIX were trading off the recent economic data then average VIX levels should be tracking at 18. The average VIX level in August was 19.4 and the average since mid-August has been 25.9, with a closing high of 40.7 on August 24.

Baseline VIX: ISM in low 50's suggests equilibrium VIX level of 18, even after controlling for the drop in unemployment rate

We estimate that baseline VIX levels tend to increase about one-half of a vol point for every one-point decline in ISM new orders. ISM new orders levels averaged about 10 points higher over the back half of last year relative to where they are now (2H 2014 avg: 61.4 vs current: 51.7), so baseline VIX levels should be about 5 vol points higher. The average VIX level over 2H 2014 was 14.6. An estimate for the average VIX level given just the shift in new orders is approximately 19.7 (14.6 + 0.52*(61.4-51.7) ). Controlling for the drop in the unemployment rate to 5.1% puts our model at 18. A similar analysis on one-month S&P 500 realized volatility suggests ...

Copper Prices Jump on Supply Cuts, China Data

Copper prices surged as U.S. investors had their first chance to respond to Glencore's decision to shut two copper mines in Africa and after data showed China's copper imports improved last month.

Alibaba lowers second-quarter gross merchandise volume estimates

(Reuters) - Alibaba Group Holding Ltd said on Tuesday it expected second-quarter gross merchandise volume (GMV) to be lower than its initial estimates due to weaker consumer spending in China.

Why SocGen Is Very Nervous About The Recent Loss Of $9 Trillion In Global Market Cap

The good news: the collapse in global market cap since May of 2015 is not the worst ever.

The bad news: the $9 trillion drop in combined market cap between the MSCI All World index and Chinese stocks, is the second highest ever, surpassed only by the $13 plunge in global market capitalization in late 2008.

Wait, $9 trillion? Yes: for all the focus on the modest correction in the S&P500, what most have forgotten is that in addition to the US, various other development markets, not to mention emerging markets, have lost trillions and trillions in value since their May peaks. According to SocGen calculations, there has been a $1 trillion drop in emerging markets, a $4 trillion decline in development equity markets, and let's not forget, the bursting of the Chinese stock bubble, which from a peak market capitalization of $10 trillion in early June, or about the same as China's GDP, has lost some $4 trillion, since despite the Chinese government's increasingly more desperate and futile attempts to reflate the bubble.

Combining all this, SocGen summarizes, "we are looking at an overall $US9 trillion loss of market capitalisation in less than 3 months! To put that number in context the most severe loss in market capitalisation over 3 months during the 2008/09 financial crisis was $12.8 trillion." The drop is almost the same as China's $10 trillion GDP (and likely well higher if one uses credible calculations).

But that's not the worst news. As SocGen's Andrew Lapthorne suggests, "such a decline in market values will impact implied leverage calculations and as such all eyes shou ...

GE clears final hurdle to $14 billion Alstom deal

BRUSSELS (Reuters) - General Electric has won EU approval for its 12.4-billion-euro ($13.9 billion) acquisition of Alstom's power business after agreeing to sell some of the French company's turbine assets to Italian rival Ansaldo Energia.

More Investors Betting Against Banking Stocks

The late-summer market tumult has taken a hefty toll on bank shares, the latest sign of the uncertainty plaguing investments that are expected to benefit from rising interest rates.

Bankrate to pay $15 million to settle SEC fraud charges

NEW YORK (Reuters) - Bankrate Inc agreed to pay $15 million to settle U.S. Securities and Exchange Commission charges that it engaged in accounting fraud to ensure that its financial results met analyst expectations.

Summary of Economic Releases this Week

Real Time Economic Calendar provided by Investing.com.

Earnings Summary for Today

Earnings Calendar provided by Investing.com.

leading Stock Positions

Leading Stock Quotes powered by Investing.com

Current Commodity Prices


Commodities are powered by Investing.com

Current Currency Crosses

The Forex Quotes are powered by Investing.com.



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

gary@econintersect.com

Click here for Historical Releases Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



You can also comment using Facebook directly using he comment block below.





Econintersect Live Market

search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


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
Main Home
Analysis Blog
Many (But Not All) Dynamics Improving But Federal Tax Receipts Are Down
The Economic Future of The Berkshires - A Reconsideration
News Blog
Why Doesn't Capital Always Flow To High-Growth Areas?
Trends In Arbitrage-Based Measures Of Bond Liquidity
Is The Next Recession Around The Corner? Probably Not
Investor Alert: Excessive Trading At Investors' Expense
Infographic Of The Day: Chart: How Every Commodity Performed In 2016
Early Headlines: Asia Stocks Mostly Down, Oil And Gold Up, Dollar Down, Obama On 60 Minutes, Brexit Is Getting Harder, Boeing's Big India Order, Shanghai Breaks Support And More
Most Read Articles Last Week Ending 14 January
Technical Update 15 January 2017
U.S. Bombs Dropped On Foreign Soil
Jubilant Ruble And Declining Peso After Trump Election
Americans Think Fake News Has An Impact
With Legal Pot Comes A Problem: How Do We Weed Out Impaired Drivers?
American Cities With The Highest Murder Rates
Investing Blog
Danger Lurks As Extremes Become The Norm
The Week Ahead: Can 4Q Earnings Match Economic Growth?
Opinion Blog
Nature Of Debt Differs Between China, Japan And The U.S.
What If US Importers And Exporters Are Largely The Same?
Precious Metals Blog
Gold's 2016 Gain Indicates A 19% Surge In 2017
Live Markets
16Jan2017 Pre-Market Commentary: Wall Street Closed For MLK Holiday, European Markets Lower, Crude Prices Slip, Investors Await Serious Market Correction As Some Bearish Analysts Claim The Sky Is About To Fall
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government





























 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved