Dow lost 31, decliners over advancers 2-1 & NAZ fell 32. The MLP index plunged another 9+ to the 257s as oil prices decline & the REIT index rose 2+ to the 316s. Junk bond funds were mixed to higher & Treasuries slid lower. Oil dropped to the 32s (see below) & gold is flattish, barely hanging in above 1100.
Dow Jones Industrials
China's Cabinet has created a new department to coordinate financial & economic affairs, according to a leaker, as country leaders seek to restore investor confidence in gov regulation of markets. The department under the State Council's general office is tasked with coordinating between China's financial & economic regulators & gathering data from local offices. The move signals a broader recognition among Communist Party leaders that gov current structure must be revamped to properly manage the gyrations of the narkets & its economic slowdown. Investors have voiced renewed concern about gov credibility following a series of interventions since this summer to arrest a market slide that led equities to fall globally. The Shanghai Composite Index has plunged more than 17% since late Dec & leaders had to abandon a newly imposed stock circuit-breaker system after stock slides twice halted trading for the day last week.
Oil prices fell for a 6th session to trade near 12-year lows as concerns about China's economic slowdown, reflected in a renewed slide in its stock markets, weighed on the outlook for demand this year. Traders increased bets against any near-term recovery in the oil price. Speculators increased their net short positions to a record high in the week to last Tues in a sign that they are losing faith in a price rise any time soon. Analysts pointed to China's economic slowdown, which has seen the yuan weaken & 2 emergency suspensions in Chinese equity markets last week, as the main reasons for lower oil & commodity prices. Today, turbulence gripped Chinese markets again, as blue-chip stocks fell by another 5% & overnight interest rates for the yuan outside of China soared to nearly 40%, their highest since the launch of the offshore market. On analyst said that oil prices in the $20s were possible, especially if the $ surges more against other currencies. Today's decline adds to last week's more than 10% drop in both Brent & WTI prices & it is believed the pain for producers will intensify in the early part of this year.
The 6th day of trading in the new year is turning out to be another gloomy one. China & falling oil prices are the main worries, but growing chaos around the globe is not helping matters. The Mid East keeps going from bad to worse, with nobody in charge. Even the threat of reduced oil supply is not bringing out out buyers for oil, a very bad sign for this market & all markets in general. The stock market is greatly oversold, a bargaining hunting rebound can be expected. But earnings will begin this week & they are not expected to be pretty.
Dow Jones Industrials
Dow Jones Industrials
| CLG16.NYM | Crude Oil Feb 16 | 32.40 |  0.76 (2.39%) |
China's Cabinet has created a new department to coordinate financial & economic affairs, according to a leaker, as country leaders seek to restore investor confidence in gov regulation of markets. The department under the State Council's general office is tasked with coordinating between China's financial & economic regulators & gathering data from local offices. The move signals a broader recognition among Communist Party leaders that gov current structure must be revamped to properly manage the gyrations of the narkets & its economic slowdown. Investors have voiced renewed concern about gov credibility following a series of interventions since this summer to arrest a market slide that led equities to fall globally. The Shanghai Composite Index has plunged more than 17% since late Dec & leaders had to abandon a newly imposed stock circuit-breaker system after stock slides twice halted trading for the day last week.
China Said to Create New Office Coordinating Finance and Economy
Oil prices fell for a 6th session to trade near 12-year lows as concerns about China's economic slowdown, reflected in a renewed slide in its stock markets, weighed on the outlook for demand this year. Traders increased bets against any near-term recovery in the oil price. Speculators increased their net short positions to a record high in the week to last Tues in a sign that they are losing faith in a price rise any time soon. Analysts pointed to China's economic slowdown, which has seen the yuan weaken & 2 emergency suspensions in Chinese equity markets last week, as the main reasons for lower oil & commodity prices. Today, turbulence gripped Chinese markets again, as blue-chip stocks fell by another 5% & overnight interest rates for the yuan outside of China soared to nearly 40%, their highest since the launch of the offshore market. On analyst said that oil prices in the $20s were possible, especially if the $ surges more against other currencies. Today's decline adds to last week's more than 10% drop in both Brent & WTI prices & it is believed the pain for producers will intensify in the early part of this year.
Oil Prices Fall for Sixth Day
The 6th day of trading in the new year is turning out to be another gloomy one. China & falling oil prices are the main worries, but growing chaos around the globe is not helping matters. The Mid East keeps going from bad to worse, with nobody in charge. Even the threat of reduced oil supply is not bringing out out buyers for oil, a very bad sign for this market & all markets in general. The stock market is greatly oversold, a bargaining hunting rebound can be expected. But earnings will begin this week & they are not expected to be pretty.
Dow Jones Industrials
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