Wall Street is pointing towards a flat opening in negative territory (SPY -0.1%) in what could be a quiet trading day. U.S. stock market is struggling for direction as the U.S. dollar stood tall against its major rivals and crude prices slid 1.8%.
Here is the current market situation from CNN Money
European markets are mixed. The FTSE 100 is higher by 0.27%, while the CAC 40 is leading the DAX lower. They are down 0.71% and 0.51% respectively.
LONDON (Reuters) - The dollar edged up on Monday, boosted by robust U.S. wage growth data that strengthened the case for more U.S. interest rate rises, while Britain's pound fell on comments by Prime Minister Theresa May seen as pointing to a "hard" Brexit.
LONDON (Reuters) - Oil fell 2 percent on Monday as signs of growing U.S. production outweighed optimism that many other producers, including Russia, were sticking to a deal to cut supplies in a bid to bolster the market.
HONG KONG (Reuters) - McDonald's Corp has agreed to sell the bulk of its China and Hong Kong business to state-backed conglomerate CITIC Ltd and Carlyle Group LP for up to $2.1 billion, seeking to expand rapidly without using much of its own capital.
DETROIT (Reuters) - Fiat Chrysler Automobiles on Sunday said it will invest $1 billion to modernize two plants in the U.S. Midwest and create 2,000 jobs, upping the ante as automakers respond to threats from President-elect Donald Trump to slap new taxes on imported vehicles.
SHANGHAI (Reuters) - The head of a major bitcoin exchange in China says few people there use the cryptocurrency to get around rules on how much money they can take out of the country, and despite a publicized meeting with the central bank last week the exchange, BTCC, hasn't been told explicitly to check capital outflows.
DETROIT (Reuters) - Google unveiled its latest self-driving system in a Chrysler Pacifica minivan during a Sunday preview ahead of the Detroit auto show, saying the technology is more reliable and affordable.
While the rest of Europe's troubled periphery has been enjoying a slow, if steady, economic improvement in recent years (it is unclear if it would sustain should the ECB's QE backstop be withdrawn and sovereign interest rates spike), in an unexpected deterioration reported earlier this morning, Italy's unemployment rate rose to the highest level since June 2015, as the country struggles to regain a solid economic footing.
According to Italy's statistics agency Istat, the jobless rate jumped to 11.9% in November, up from a revised 11.8% the month before, and well above the 11.6% consensus forecast. Despite the headline deterioration, there were 19,000 more people employed in Italy in November compared with the month before, Bloomberg reports.
Even more troubling, youth unemployment rose to 39.4 percent, up from 37.6% and the highest since October 2015.
The Italian deterioration stood out across a stable European backdrop: the November unemployment rate for broader euro area was 9.8%, the European Union's statistics office in Luxembourg said later Monday.
In the latest dangerously close encounter between US and Iranian navies, Reuters reports that a U.S. Navy destroyer fired three warning shots at four of Iran's Islamic Revolutionary Guard Corps vessels on Sunday after they closed in at a high rate of speed in the Strait of Hormuz, according to two U.S. defense officials.
The Reuters sources said that the USS Mahan established radio communication with the boats but they did not respond to requests to slow down.
The USS Mahan
The Navy destroyer fired warning flares and a U.S. Navy helicopter also dropped a smoke float.
The Iranian vessels came within 900 yards (800 meters) of the Mahan, which was escorting two other U.S. ships.
The last such encounter in which a US navy ship fired warning shots at Iranian vessels took place last August, when the USS Nitze fired three warning shots after a "harassing" Iranian fast-attack craft approached and circled two U.S. Navy ships and a Kuwaiti vessel in the northern Gulf. The U.S. ship fired the shots into the water after the Iranian ship did not leave after a brief radio conversation.
The Iranian vessels had moved at high speed toward the Nitze, which allegedly was operating in accordance with international law in international waters and ignored maritime "rules of the road" as set out in the 1972 Convention on the International Regulations for Preventing Collisions at Sea. According to the Navy official, the IRGC vessels ignored multiple warnings, creating a dangerous, harassing environment that could have pushed the Nitze to take defensive measures, escalating the situation. At the time, Iran's defense ...
Questions about the jobless recovery following the Great Recession have spurred economists to scrutinize the nation's rate of labor force participation (LFP). The LFP rate measures the share of the population that actively participates in the labor market, or the total number of people employed and unemployed as a share of the working-age population.
Regardless of your allocation to stocks or your investment horizon, this kind of big-picture trend in the dollar means now is the time to position your investment portfolio to profit — and to avoid some of the pitfalls that can come from a strong domestic currency, writes Jeff Reeves.
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