Action Insight · Asia Pacific · Economic Outlook · Emerging Markets · Europe · Markets Data · North America

Markets Update pm

 

  • OIl had been sharply higher after Saudi Arabia cut off diplomatic ties with Iran on Sunday, but it’s tumbled more than $1 per barrel in the past few minutes, and is now modestly lower on the session at $36.95 per barrel. USO -0.55%
  • The dollar sold off overnight, but it’s put in a strong rally over the past couple of hours. The greenback is now in the green (UUP +0.5%) against all the major currencies, and particularly strong vs. the Swiss franc (FXF -0.4%) and commodity currencies the aussie (FXA -1.9%) and loonie (FXC -0.7%).
  • U.S. equities are at session lows, the S&P 500 down 2.5% and Nasdaq off 3%.
  • The overall PMI slipped to 48.2 in December from 48.6 the month before. Economists had expected a small rise to 49.2.
  • The New Orders and Production subindexes both rose a hair, though both remain in contraction zone at 49.2 and 49.8, respectively.
  • Employment fell to 48.1 from 51.3, Supplier deliveries to 50.3 from 50.6, and Backlogs to 41 from 43.
    • In case anyone missed the news, the Fed has just embarked on rate hike cycle.
    • The major U.S. stock indices remain lower by about 2%, and the 10-year Treasury yield is down by six basis points to 2.21%. TLT +1.3%, TBT -2.6%.
  • Dec US PMI Manufacturing Index 51.2 vs. 51.3 consensus, 52.8 in Nov.
  • “The manufacturing sector saw a disappointing end to 2015, and its plight looks set to continue into the New Year as headwinds show no sign of abating any time soon.” said Chris Williamson, chief economist at Markit.

 

  • Europe’s Stoxx 50 (NYSEARCA:FEZ) is down 4% to start off the year, with Germany’s Dax off 4.2%. The FTSE 100 (NYSEARCA:EWU) is down 2.5%, France (NYSEARCA:EWQ3.5%, Italy (NYSEARCA:EWI2.8%, and Spain (NYSEARCA:EWP2.5%.
  • The move comes after a 6.9% dive and trading halt in Shanghai, which appears to be a reaction to a blowup in diplomatic ties between Saudi Arabia and Iran.

 

  • Trading in China was halted after a 6.9% plunge in the Shanghai Composite as traders reacted to growing tensions in the Middle East and another dip in one of China’s manufacturing gauges.
  • The Nikkei tumbled 3.1% and the Hang Seng 2.7%.
  • Germany’s (NYSEARCA:EWG4.3% decline is leading European losses.
  • Nasdaq 100 futures are down 2.1%, and S&P 500 and Dow futures are lower by 1.8%.
  • Oil is up $0.27 per barrel to $37.32 and gold is ahead $12 per ounce to $1,071.
  • The 10-year Treasury yield is down six basis points to 2.21%.

 

 

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