21Jan2016 Pre-Market Commentary: US Futures 1% Higher This Morning, Crude Steady And The US Dollar Jumping Higher

Written by Gary

US stock future indexes are up over one percentage point this morning following another selloff in China. Oil prices are hanging around the $28 level, following an API report showing a U.S. crude inventory build of 4.5M barrels last week – about double trade expectations. Markets are expected to open higher.

Here is the current market situation from CNN Money
	European markets are sharply higher today with shares in Germany leading the region. The DAX is up 2.31% while London’s FTSE 100 is up 1.58% and France’s CAC 40 is up 1.26%.

What Is Moving the Markets

Here are the headlines moving the markets.
	U.S. stocks set for a comeback, or another blow? NEW YORK (Reuters) – The deep selling that has been synonymous with Wall Street in the new year became bad enough on Wednesday to start drawing in buyers, but it is still too soon to tell whether they will look brilliant or battered in the weeks ahead.
	Barclays to slash about 1,000 investment bank jobs worldwide HONG KONG (Reuters) – Barclays will cut about 1,000 jobs in investment banking worldwide and close its cash equities business in Asia as new Chief Executive Jes Staley wields the axe in a bid to reduce costs and boost returns.
	United to buy 40 Boeing jets in blow to Bombardier CSeries (Reuters) – United Airlines said on Thursday it will buy 40 single-aisle jets from Boeing Co in a blow to smaller rival Bombardier Inc , which has sought a major customer to give momentum to its CSeries jet after years of delays and cash problems.
	United Continental quarterly profit misses expectations (Reuters) – United Continental Holdings Inc on Thursday reported fourth-quarter profit that was below analysts’ expectations.
	Oil prices fall near 2003 lows on oversupply, demand worries LONDON (Reuters) – Oil fell on Thursday, turning back toward 12-year lows on persistent concerns about oversupply and the outlook for demand.
	Verizon results beat as promotions keep churn in check (Reuters) – Verizon Communications Inc reported better-than-expected quarterly revenue as heavy promotions helped it to check customer defections and subscriptions rose for the carrier’s high-speed Internet service.
	Stock futures fall; crude oil prices hold steady (Reuters) – U.S. stock index futures dropped on Thursday, indicating there would be little respite from this year’s selloff, sparked by a steep drop in oil prices and growing fears of a global economic slowdown.
	European stocks lick wounds after mauling, oil steady LONDON (Reuters) – A small bounce in European shares and tentative stabilization in oil prices helped calm investors on Thursday, after a torrid few days that has wiped trillions of dollars off global markets.
	China shares follow Asian bourses lower as oil rally fizzles SHANGHAI (Reuters) – China’s fragile stock markets ended sharply lower on Thursday as oil prices failed to sustain a bounce from 13-year lows and other Asian markets went into reverse.
	Initial Jobless Claims Surge To 6-Month Highs The last 4 months have seen a notable change in the jobless claims regime. After ratcheting lower week after week for 5 years, initial jobless claims have risen from 42 year lows at 243k in October to 293k today. The first time we reached these levels was July 2014 and claims are rising at the fastest rate since the financial crisis. Crucially for those who look at ‘record’ low jobless claims as a positive, history tells us that is the time to worry as recessions loom on the upswing. Each time claims have bottomed like this, a recession has ensued…
	Mario Draghi Deer In Headlights Presser – Live Feed DRAGHI SEES RATES AT PRESENT OR LOWER LEVEL FOR SOME TIME DRAGHI SAYS DOWNSIDE RISKS HAVE INCREASED SINCE START OF YEAR DEC 3 DECISIONS STRENGTHEN OUR FORWARD GUIDANCE DRAGHI SAYS POLICY STANCE WILL NEED TO BE REVIEWED MUST REVIEW, PERHAPS RECONSIDER MONPOL STANCE IN MARCH DRAGHI: RISKS COULD WEIGH ON EXPORT DEMAND, CONFIDENCE DRAGHI: RISKS RELATE TO GLOBAL ECON UNCERTAINTY, GEOPOL RISKS DRAGHI: RISKS TO EMU GROWTH REMAIN ON DOWNSIDE DRAGHI:ECON RECOVERY STILL DAMPENED BY WEAK EME GROWTH OUTLOOK DRAGHI: RENEWED OIL PRICE DROP TO HELP HHLDS, FIRMS DRAGHI:INFL OUTLOOK SIGNIFICANTLY LOWER THAN IN EARLY DECEMBER Despite the turmoil reverberating across global markets, the ECB kept the depo rate unchanged on Thursday at -0.30%. The focus now turns to the Draghi presser where market participants will be keen on parsing the former Goldmanite’s every word for hints at how the central bank plans to cope with the disinflationary impulse unleashed by sub-$30 crude and the ongoing œadjustment of the Chinese economy and currency. Will Draghi employ a bit of his trademark jawboning to pressure the EUR? Is the ECB prepared to act in March if inflation remains subdued and financial markets continue to collapse amid slumping oil and an uncertain geopolitical landscape? Will Super Mario simply freeze up like a deer in headlights now that the world is on fire? And most importantly, will there be any confetti? Watch live to find out.
	Russian Ruble Crashes To Record Lows In “Panic”: “Some Investors Are Selling At Any Price” Late last month, we took a look at Russia’s economy and concluded that although the country has proven to be remarkably resilient in the face of collapsing crude prices, the outlook is darkening. The ruble has fallen for three consecutive years and is now under immense pressure both from Western economic sanctions and from crude’s inexorable decline. œThe wish to hedge potential risks from geopolitics and commodities may well push the ruble to 75, Evgeny Koshelev, an analyst at Rosbank PJSC in Moscow, told Bloomberg by e-mail in December. œIt will be interesting to see if there’s a reaction from the central bank, government and households to this weakening. Koshelev’s warning proved prescient. Oil prices continued to slide in the new year as uncertainty out of China, a dour outlook for global growth and trade (see the IMF’s latest cut to global growth forecasts), and the prospect of increased Iranian supply weighed on a market that was already œdrowning in oversupply, to quote the IEA. Meanwhile, the geopolitical situation took a nasty turn for the worst earlier this month when Saudi Arabia irked the Shiite world with the execution of Sheikh Nimr al-Nimr, whose death adds fuel to the sectarian fires already burning in Syria, Iraq, and Yemen. Thanks to Moscow’s intervention on behalf of Bashar al-Assad, Russia is now inextricably bound up in the melee. Against this backdrop, the ruble has collapsed to fresh record lows and on Thursday marked its steepest two-day decline in nine months, falling beyond 85 per USD.
	ECB Keeps Rates Unchanged, Focus Turns To Draghi Nobody was expecting a rate cut (and hopefully not a hike) from the ECB today, and that’s precisely what they got when moments ago the ECB announced it would keep its three key rates unchanged as follows: Marginal Lending Facility: 0.30% Deposit Facility: -0.30% Main Refinancing Rate: 0.05% The full release: At today’s meeting the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.05%, 0.30% and -0.30% respectively. The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 14:30 CET today. The summary shown below: Now attention turns to Draghi, but unlike on December 3, with far less excitement.
	Global Stocks Face Fresh Losses Equities struggled to regain traction following a brutal selloff in the previous session, as investors looked ahead to a news conference with ECB President Mario Draghi for clues on the bank’s next move.
	Activists Beware: Huge Investors Debut New Long-Term Index Six large institutional investors said they would allocate $2 billion to track a newly created index of shares of companies that focus on long-term strategies.
	BNY Mellon Profit Jumps Bank of New York Mellon Corp. said profit soared in its latest quarter, despite a decline in assets that pressured fee revenue.
	Alkermes shares plunge after drug misses trial goals ALKS 5461, a drug that aims to treat clinical depression, failed to meet goals for two of three clinical trials, with a third trial ongoing.
	Caroline Baum: Does Davos actually do any good for the world? When the elite gather, do they create the future or just stand around and look smart? Caroline Baum wonders.
	Economic Report: Jobless claims jump again to 7-month high The most Americans in seven months applied for unemployment benefits in mid-January, perhaps a sign that the rate of layoffs in the U.S. has risen slightly from record lows.