The KUIK Market Update for Monday, January 11:
Markets are down.
Index Direction Change Units Time
Dow Down (9) points 16,335 8:15 AM
S&P500 Down -0.3% percent 1,917
Nasdaq Composite Down -0.6% percent 4,618
30 Year Treasury Up 3 Basis Points 2.95 Annual Yield
The Shanghai Composite Index fell 5.3% to 3,016.70, for the lowest finish in three and a half months. It’s lost 15% so far this year. Another 3% drop would put it below its close of 2,927.29, reached on Aug. 26, during the last correction. The smaller Shenzhen Composite fell 6.6% to 1,848.10. In Hong Kong the Hang Seng Index was off 2.8% at 19,888.50, closing below 20,000 for the first time since June 2013.
Concerns about a slowdown in China weigh heavily on sentiment in oil markets. February crude is down 2.9%, to $32.23 a barrel on the New York Merc. It lost more than 10% last week. In a research note today, Morgan Stanley argues that traders have put too much of the blame for recent weakness in commodities, especially oil, on market fundamentals. Instead, they contend that the primary driver over the last several months has been a strengthening U.S. dollar. And with China likely to further devalue the yuan and the US Federal Reserve in tightening mode, further dollar strength seems likely,
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
http://www.marketwatch.com/story/china-stocks-drop-sharply-in-early-trading-2016-01-10
http://www.marketwatch.com/story/oil-could-fall-to-20-but-not-for-the-reason-you-think-2016-01-11
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