The KUIK Morning Market Report for Monday, January 18:
Stock and bond markets are closed in honor of the Martin Luther King holiday but here are some of the stories we are following:
Futures will trade until 10 am Pacific time. Crude oil is down again today. February crude is off 1.5% to $29.01 a barrel on the New York Merc. The end Iranian oil sanctions is hurting the market. Iran has said it will add 500,000 barrels a day to the already oversupplied market. However oil was up from session lows on news Omann will cut production between 5% and 10%.
The Stoxx Europe 600 ended down almost 0.5% to 328, after rising as much as 0.8% earlier in the session. All sectors were down, led by financial, consumer services, and telecom.
Qualcomm has agreed to establish a joint venture with the Chinese province of Guizhou to develop chips for server systems, the latest step in the U.S. company’s strategy to move beyond selling semiconductors for smartphones. The province’s investment arm will own 55% of the venture and Qualcomm will hold the remaining 45%. They will invest at the same percentages to fund the company initially at about $280 million. Worries about the Chinese economy and demand for technology have contributed to sharp drops in global stock markets. Last Thursday Intel said caution about China factored into a projection for first quarter results below analysts’s expectation.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
http://www.marketwatch.com/story/brent-oil-taps-under-28-a-barrel-as-investors-brace-for-iran-oil-2016-01-18\
http://www.marketwatch.com/story/european-stocks-struggle-to-find-solid-direction-2016-01-18
http://www.marketwatch.com/story/qualcomm-setting-up-joint-venture-in-china-for-server-chip-development-2016-01-18
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