Written by Gary
U.S. stock future indexes are flat following China’s move to shore up shaky investor sentiment. Yesterday’s equities selloff fueled by China’s economic slowdown, the PBOC flooded its banking system with 130B yuan to prop up investor sentiment. Although Investors appear to be a bit calmer today the Global Markets are still susceptible to financial shock. Markets are expected to open flat and then do the morning dip.
Here is the current market situation from CNN Money | |
 | European markets are higher today with shares in London leading the region. The FTSE 100 is up 0.56% while Germany’s DAX is up 0.20% and France’s CAC 40 is up 0.11%. |
What Is Moving the Markets
| Here are the headlines moving the markets. | |
 | Stock futures lower on global growth worries (Reuters) – U.S. stock index futures were lower on Tuesday, a day after weak Chinese economic data rekindled fears of a global slowdown and sparked a sharp selloff. |
| Exclusive: Barclays to cut Asia investment banking jobs next week – sources SINGAPORE/HONG KONG (Reuters) – Barclays will announce investment banking job cuts across Asia next week, including closures in South Korea and Taiwan, sources with direct knowledge of the matter told Reuters. |
| Some Yahoo investors want to sell Internet business even if it triggers big tax bill (Reuters) – Several major Yahoo Inc shareholders are so concerned the company’s core Internet business could fall in value that they want it sold as soon as possible. |
| Global stocks slide as China fails to quell stormy start to year LONDON (Reuters) – World stocks fell again on Tuesday after their worst first-day performance in years, extending losses as relief at intervention by China to steady its markets quickly evaporated in the face of mounting concerns about the global economy. |
| Texas tycoon Wyly faces $2 billion tax trial over offshore trusts (Reuters) – Texas tycoon Sam Wyly is set to face off against the Internal Revenue Service at trial on Wednesday over more than $2 billion the agency says he owes for using offshore trusts to engage in one of the largest tax frauds in U.S. history. |
| Volkswagen faces billions in fines as U.S. sues for environmental violations WASHINGTON/FRANKFURT (Reuters) – The U.S. Justice Department has sued Volkswagen for up to $90 billion for allegedly violating environmental laws – five times regulators’ initial estimate and a reminder of the carmaker’s problems nearly four months after its emissions scandal broke. |
| Nissan says not considering extending support to Takata TOKYO (Reuters) – Nissan Motor Co said on Tuesday it was not planning to offer financial support to Takata Corp, the airbag maker at the center of a massive global recall over faulty inflators. |
| China regulator queries Microsoft on findings in anti-trust probe SHANGHAI (Reuters) – China’s industry and commerce regulator has asked Microsoft Corp to explain “major issues” that it says have come to light from digital data obtained as part of an anti-trust investigation. |
| This Is The ‘New’ Most Important Number For The S&P 500Weakness in Breadth, volume, sentiment, and momentum all lead BofAML to warn “sell rallies” in stocks. Starting 2016 under pressure, the S&P 500 has big support at 1994-1990 but 1965 is the level at which things become perilous. Simply put, holding 1965 is required if a ‘bounce’ like late 2011 is expected. S&P 500: 1990-1965 is the big support to start 2016 The S&P 500 starts off 2016 under pressure, with big support at 1994-1990 to 1965. As we outlined in our 2016 Year Ahead, 1965 is the 61.8% retracement of the late September-to-early November rally and holding this level is required to maintain that the S&P 500 is consolidating within a rising trend similar to 2011. The S&P 500 dropped but held a similar 61.8% retracement level in late 2011, before an upside breakout in early 2012. Today’s downside gap, at 2038-2044, offers initial resistance. First resistance remains 2076-2080, which held on a muted seasonal rally in late December, and is ahead of big resistance at the 2100-2135 range highs.
Holding 1965 is needed to keep pattern similar to late 2011 In late 2011, holding a key 61.8% retracement level kept a bullish consolidation pattern intact and preceded an upside breakout in early 2012. This means that holding the 61.8% retracement at 1965 is needed to keep the late 2015-to-early 2016 pattern similar to the bullish setup from late 2011/early 2012. A failure to do so would weaken the overall pattern for the S&P 500. … |
| First $1.5 Billion Hedge Fund Casualty Of 2016 Blames HFTs For Making A Mockery Of InvestingFollowing a year of historic routs in the hedge fund space, yesterday we pointed out that after the new year’s break, it was time for the pain among the active investors to return:
Less than 24 hours later, this is exactly what happened when as Bloomberg reports, Nevsky Capital’s $1.5 billion hedge fund is shutting down and returning money to investors. The reason: the emergence of computer-driven trading strategies and index funds diminish money-making opportunities. What again is surprising about this latest hedge fund liquidation, is that the fund was not a significant underperformer, in fact according to BBG it was up 0.9% in 2015, outperforming the majority of the “smartest money” out there:
Even so, the founders have had enough with a centrally-planned, HFT manipulated “market” which is that only in name.
|
| “It’s Time For You To Leave”: Oregon Sheriff Demands Militiamen “Peacefully” DepartDespite Ammon Bundy’s best efforts to explain the motives of the militiamen who over the weekend seized control of a remote federal building in Oregon, it’s still not entirely clear why several dozen US citizens decided to occupy the Malheur National Wildlife Refuge. WaPo is probably correct to say that there “are gun rights issues, religious overtones, broad strains of anti-government sentiment and even the tactics of the Occupy Wall Street movement” at play, but like the Occupy movement, those holed up in the snowy government outpost have yet to articulate a coherent set of grievances to justify their cause. As we outlined on Sunday, Ammon Bundy is the son of Cliven Bundy, a kind of folk hero at the heart of a 2014 standoff with the government that ended with what some say was a victory for individual and state’s rights.
Apparently, the younger Bundy is attempting to engineer another direct conflict with federal authorities by rallying around the œcause of Dwight Hammond and his son Steven, who were sent back to jail on Monday for arson. |
| Frontrunning: January 5Global share market settles after stormy start to year (Reuters) Stocks Extend Losses as Yen, Gold Rise on Lingering China Unease (BBG) China battles to shore up stocks, yuan after globe-shaking slide (Reuters) China Said to Intervene in Stocks After $590 Billion Selloff (BBG) Volkswagen faces billions in penalties as U.S. sues for environment violations (Reuters) Obama tightens gun rules, requires more background checks (Reuters) Obama to Announce Expansion of Background Checks for Gun Purchases (WSJ) Republican eyes DOJ budget to block Obama gun orders (Hill) This Time Mideast Tensions Are Bad News for Oil (BBG) New Saudi-Iran crisis threatens wider escalation (Reuters) South China Sea tensions surge as China lands plane on artificial island (Reuters) High-Speed Trader DRW Proposes Th … |
| Global Stocks Fall Despite Chinese ActionGlobal stocks extended losses following a sharp opening-day selloff, with shares taking their cue from weakness in China, even after the country’s central bank took measures to calm nerves. |
| U.S. Auto Makers Still Have Fuel in the TankStrong car sales could gas up auto stocks one more time |
| Bearish U.S., China Data Push Oil DownwardWeaker-than-expected Chinese manufacturing data and U.S. factory orders fueled worries about demand that pushed crude prices lower, despite rising tensions in the Middle East. |
| Blogger Sentiment Less Bullish Entering January 2016The latest Blogger Sentiment Poll released 04 January 2016 by Ticker Sense is less bullish than it was at the beginning of December 2015.
|
| Metals Stocks: Gold prices gain as markets remain rattledGold futures climb Tuesday as uncertainty about China’s economy and tensions in the Middle East linger, drawing haven bids for the precious metal. |
| Deep Dive: 11 medical-device stock picks for 2016The sector seems fully valued, but some companies stand out, according to Jefferies. |
| Chipotle’s stock leads the decline on the first trading day of 2016Some 420 stocks in the S&P 500 are down on Monday. |
Earnings Summary for Today
leading Stock Positions
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:
