22Sep2015 Pre-Market Commentary: U.S. Stock Futures Indexes Down Sharply, WTI Oil Falling, U.S. Dollar Rising, Markets To Open Lower

Written by Gary

U.S. stock futures indexes are down 1.3% and falling. Biotech’s are getting slammed, oil is falling and the U.S. dollar is rising. This downturn may be momentary in the ‘big’ picture as the sideways channel the markets are in has not been broken.

Markets are expected to open lower and may recover some losses by the noon hour.

Here is the current market situation from CNN Money
	European markets are sharply lower today with shares in Germany off the most. The DAX is down 3.37% while France’s CAC 40 is off 3.27% and London’s FTSE 100 is lower by 2.41%.

What Is Moving the Markets

Here are the headlines moving the markets.
	Volkswagen to dismiss CEO over emissions-cheating scandal: paper FRANKFURT (Reuters) – Volkswagen will dismiss Chief Executive Martin Winterkorn, a German newspaper said on Tuesday, after the carmaker admitted to cheating U.S. vehicles emissions tests and said 11 million of its cars could be affected worldwide.
	Goldman CEO Blankfein says has ‘highly curable’ form of lymphoma (Reuters) – Goldman Sachs Group Inc Chief Executive Lloyd Blankfein said he had a “highly curable” form of lymphoma, but would be able to work substantially as normal during treatment.
	From spies to smartphones: Britain’s Aga set for another new chapter LONDON (Reuters) – The sale of oven maker Aga Rangemaster to a U.S. owner with global ambitions caps the transformation of a quintessential English country brand created by some of the biggest names in global design, advertising – and espionage.
	Miners, Volkswagen hit Europe shares, dollar up on rates outlook LONDON (Reuters) – Shares slid on Tuesday, with Europe led lower by mining companies as copper prices fell on worries over Chinese demand, while the dollar rose to its highest in almost two weeks after Federal Reserve officials signaled U.S. interest rates might rise this year.
	Do Better Bank Services Have A Hidden Cost? from Liberty Street Economics — this post authored by Dong Beom Choi and Ulysses Velasquez You walk into a bank branch, check in hand. You find yourself in a well-lit space with modern furnishings, and you help yourself to a cup of freshly brewed coffee, courtesy of the bank. Neatly dressed assistants in uniform stand in a row, ready to attend to customers at a moment’s notice, and in fact, one of them approaches you to help you deposit your check. Having finished your business, you leave feeling reassured that such a customer-oriented organization is diligently tending to your hard-earned money. But what could possibly be missing?
	Frontrunning: September 22 Pressure builds on Volkswagen CEO as emissions-cheating probe spreads (Reuters) Volkswagen Emissions Scandal Relates to 11 Million Cars (WSJ) Volkswagen Emissions Investigations Should Widen to Entire Auto Industry, Officials Say (WSJ) Germany’s Bosch makes VW’s U.S. diesel components (Reuters) Volkswagen scandal will have personnel consequences – state economy minister (Reuters) Glencore Falls to Record as Mining Shares Lead Stock Losses (BBG) Despite Slump, China’s Xi Jinping Pledges Economic Reforms (WSJ) Hacking Allegations Threaten to Overshadow Xi-Obama Summit (BBG) Five Things on the Agenda When China’s Xi Goes to Washington (BBG) China SOE defa …
	Joe Sixpack’s Situation in 2Q2015: Joe Continues To Be Better Off Written by Steven Hansen The Federal Reserve data release (Z.1 Flow of Funds) for 2Q2015 – which provides insight into the finances of the average household – shows a modest improvement in average household net worth. Our modeled “Joe Sixpack” – who owns a house and has a job, and essentially no other asset – is better off than he was last quarter.
	Futures sharply lower on falling oil, copper prices (Reuters) – U.S. stock index futures were down about 1.5 percent on Tuesday as oil and copper prices fell on uncertain demand from China.
	Oil prices fall on uncertain global outlook LONDON (Reuters) – Crude oil prices fell as much as 2 percent on Tuesday, unwinding the previous day’s steep rally, under pressure from uncertainty over whether global demand will be enough to erode a sky-high surplus.
	Futures Plunge On Renewed Growth, Central Bank Fears; Volkswagen Shares Crash As Default Risk Surges While Asian trading overnight started off on the right foot, chasing US momentum higher, things rapidly shifted once Europe opened as attention moved back to global growth fears, contradicting central banks losing credibility, as well as the miners with copper sliding back to a 2 week low, and the ongoing Volkswagen fiasco. The first sign that not all is well was the latest plunge in Glencore shares tracking the recent selling in copper which two weeks after a “doomsday” capital raise, has once again crashed to fresh all time lows, down 10% on the session, and down 80% since the 2011 IPO. GLEN CDS, as we predicted 2 weeks ago, is back over 400 bps. The general risk off tone was exacerbated by a steep selloff in the all important carry pair, the USDJPY, which plunged just as Europe opened, and has been trading below 120 for the past several hours, in turn pushing both the EuroStoxx and E-minis well lower. But the knockout punch came just under an hour ago, when Volkwsagen – already the focus of everyone’s attention – announced it plans to set aside 6.5 billion euros ($7.3 billion) in the third quarter to cover the costs of addressing irregularities in diesel engines installed in 11 million vehicles worldwide, as the scandal that started in the U.S. widens. “Volkswagen is working at full speed to clarify irregularities concerning a particular software used in diesel engines,” the Wolfsburg, Germany-based company said in statement. The manufacturer said it w …
	China president seeks to reassure on reform, heads to U.S. SHANGHAI/BEIJING (Reuters) – Chinese President Xi Jinping added his voice on Tuesday to officials trying to reassure the world that the government was still firmly committed to financial reform following criticism of its intervention to steady rocky markets and boost growth.
	The Crisis Of The Well-Crafted Candidate from STRATFOR — this post authored by George Friedman For the past several years, I have been writing about the emerging political crisis in Europe. The inability of European mainstream political parties to face the fact that the European Union is not functioning as intended would, I have argued, delegitimize these mainstream parties and bring about the emergence of seemingly exotic challengers.
	Alstom set to win $2.5 billion U.S. train deal: senator PARIS (Reuters) – French transport group Alstom is set to win a $2.5 billion contract to build the next generation of high-speed trains for U.S. rail operator Amtrak, U.S. Senator Charles E. Schumer said.
	Craig Venter’s company in deal for whole exome tests at new low cost (Reuters) – A company formed by genome pioneer Craig Venter will offer clients of a South Africa-based insurance company whole exome sequencing – sequencing all protein-making genes in the human genome – at a price that marks yet another dramatic decline in the cost of gene sequencing, the two companies said on Tuesday.
	EDF eyes renewables expansion outside Europe, CEO says PARIS (Reuters) – French state-controlled utility EDF wants to expand into renewable energy beyond Europe, Chief Executive Jean-Bernard Levy told financial daily Les Echos in an interview published on Tuesday.