Tracking the DOW PLUNGE!!!

Re: Whither the Market in an Era of Rate Hikes?

Appears China is a vacuum.

Futures Bounce Fades As Oil Treads Water, Italian Banks Turmoil, Chinese Stocks Won't Stop Falling

Following the Fed's disappointing "dovish, but not dovish enough" statement which effectively admitted Yellen had committed policy error by hiking just as the US economy "was slowing down" which in turn lowered the odds of a March rate hike to just 18%, it was up to oil to pick up the correlation torch, and so it did, rising in an otherwise mixed session which has seen European stocks slide on continued weakness surrounding Italian banks, many of which have been halted limit down, while Asia was unable to pick a direction after the resignation of Japan’s "Abenomics" minister Akira Amari to over a graft scandal and yet another rout for Chinese stocks.

Before we get to the US, we should note what is going on in China where the Shanghai Composite Index fell by another 2.9% to 2655.66, capping a 9.6 percent retreat over three days, as concern a weakening economy will reduce corporate profits overshadowed the biggest cash injection into the financial markets in three years. The SHCOMP closed at the lowest level since November 2014, taking its decline for the year to 25 percent, the most since 2008. As Bloomberg notes, authorities continue to take measures to stabilize the nation's financial markets but having most of their time focused on propping up the devaluing currency, they appear to have left equity investors to fend for themselves.

This week's net injection of 590 billion yuan ($90 billion) into the money markets ahead of the start of the Chinese new year was the biggest since February 2013, however it wasn't big enough. Further declines in the equity benchmark could be on the way. Strategists and technical analysts surveyed by Bloomberg are targeting a bottom of 2,500, compared with 2,656 today. Since the Shanghai Composite Index reached a record high on June 12 it has plummeted 48 percent. As can bee seen on the chart below, it remains the world's worst performing major equity index in 2016.
http://www.zerohedge.com/sites/defau...%20chart_0.png
Away from Asia, futures on the Nasdaq 100 Index climbed driven by Facebook which jumped 12% in early New York trading after posting another record earnings period. Technology peers also rallied, with more than 2 percent gains each in Google parent Alphabet Inc., Apple Inc., Netflix Inc., Amazon.com Inc. and Microsoft Corp. Amazon and Microsoft are due to report results today, along with some 50 other Standard & Poor’s 500 Index members.

And while Europe was initially happy to track oil modestly higher, it has since then stumbled deep in the red following the latest bout of risk in Italy where banks fell for the second day, leading the FTSE MIB to underperform the broader European market, and pushing the FTSE Italia All-Share Banks index down 4.2% as of 12:18pm CET. Indeed, this morning has been a a freeze fest, with Pop. Milano, UniCredit, Monte Paschi, Pop. Emilia shares halted; down ~5% or more after Banca Akros says price of the "bad bank" guarantee looks rather costly, doubts many Italian banks will be interested in using it to offload bad loans.

The one silver lining has been the MSCI Emerging Markets Index which rose for a second day and Gulf stocks were on course for their best week since December 2014. as U.S. crude headed for a three-day advance, helping boost currencies of commodity-exporting nations. "Emerging-market assets are rallying across the board today as the Fed sounded relatively dovish watching global developments,” said Bernd Berg, an emerging markets strategist in London at Societe Generale SA. “A March Fed rate hike looks increasingly unlikely now. I think we are now entering a risk-on phase and oil-related currencies will post a sizable rally."

However, that may not last: with the futures picture changing dramatically, moments ago US equity futures slid as Oil erased all of its losses for the day:

WTI CRUDE ERASES GAINS, TRADES LITTLE CHANGED AT $32.26/BBL
WTI Crude Erases Earlier Advance, Dips 0.4% to $32.16/Bbl
S&P FUTURES QUICKLY TURN LOWER; OIL FALLS; EU STOCKS DROPPING

http://www.zerohedge.com/news/2016-0...ocks-wont-stop

Re: Whither the Market in an Era of Rate Hikes?

Baltic Dry Index + Watchlist
BDIY:IND

317.00
8.00
2.46%

As of 08:00:10 ET on 01/29/2016.

Re: Whither the Market in an Era of Rate Hikes?

Name Value Net Change % Change 1 Month 1 Year Time 2 Day

INDU:IND
DOW JONES INDUS. AVG
16,354.53 -111.77 -0.68% -6.14% -4.72% 13:00:43

SPX:IND
S&P 500 INDEX
1,928.32 -11.92 -0.61% -5.66% -3.34% 12:45:35

CCMP:IND
NASDAQ COMPOSITE INDEX
4,586.08 -27.87 -0.60% -8.41% -1.06% 13:00:51

NYA:IND
NYSE COMPOSITE INDEX
9,560.52 -72.18 -0.75% -5.75% -9.27% 12:45:23

SPTSX:IND
S&P/TSX COMPOSITE INDEX
12,616.06 -206.07 -1.61% -3.03% -14.02% 12:40:00

Name	Value	Net Change	% Change	1 Month	1 Year	Time
INDU:IND DOW JONES INDUS. AVG	16,354.53	-111.77	-0.68%	-6.14%	-4.72%	13:00:43
SPX:IND S&P 500 INDEX	1,928.32	-11.92	-0.61%	-5.66%	-3.34%	12:45:35
CCMP:IND NASDAQ COMPOSITE INDEX	4,586.08	-27.87	-0.60%	-8.41%	-1.06%	13:00:51
NYA:IND NYSE COMPOSITE INDEX	9,560.52	-72.18	-0.75%	-5.75%	-9.27%	12:45:23
SPTSX:IND S&P/TSX COMPOSITE INDEX	12,616.06	-206.07	-1.61%	-3.03%	-14.02%	12:40:00