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Stocks Futures At Limit After Rampant Risk Aversion Sinks Asian And European Markets
Written by John Rivera, Analyst
The U.S. equity markets may be headed to one of the worst days in history as futures are stuck at their limit after a massive sell off in Asian and European markets.
What To Watch For In The US Session
• Futures At Limit, As Risk Aversion
• Risk Aversion Rampant
• Existing Home Sales On Tap
Stocks Futures At Limit After Rampant Risk Aversion Sinks Asian And European Markets
The U.S. equity markets may be headed to one of the worst days in history as futures are stuck at their limit after a massive sell off in Asian and European markets. Fears have reached extreme levels which have seen a flight to safety. The Yen rose to its highest level in thirteen years against the dollar as the carry trade continues to unwind. Fundamental factors may not be in play today as panic grips investors as a global recession is becoming a reality. The U.S. existing home sales report is due to cross the wires and the expected rise in purchases may do little to generate bullish sentiment. The housing market slump has been at the root of the current crisis and any positive news from the sector would be welcomed. Today OPEC announced that they will cut production by 1.5 million barrels per day starting in November. Despite the expected decline in supply oil prices were still trading down over $4.00 per barrel, demonstrating how dismal the outlook for growth has become.
Dow Jones 8691.25
The Dow Jones Industrial Average may see one of its biggest one day declines as the dour global growth outlook. You might expect energy stocks to receive a boost from the OPEC announcement, but oil prices continuing to sink is discounting the impact. Also, the dollar continued strength will only lower profit expectations for the large multinationals that compose the blue chip index.
NASDAQ 1603.91
The NASDAQ was the only major index to trade lower yesterday and today’s events will only sink it further. The tech laden index could break below the October 10 low of 1542 leaving the 2003 low of 1,270as the next major support level. Ultimately expectations for oil prices will increase and the expected boost to consumer spending from lower gas prices will be lowered and begin to weigh on consumer related stocks.
S&P 500 908.11
The S&P 500 s looking at a lower open as lowered growth expectations have weighed on all sectors. However, the ViX index has fallen to 64 from the days high of 79, which could be a sign that the panic is abating.
Equities Freefall As Evidence Mounts For Global Recession.
Panic gripped equity markets as data continues to point to an extended global recession. All major indexes in Europe were trading down over 7% as the race to the bottom continues. The inability of analyst to asses an impact on the recent frozen credit markets has left traders in the dark and the uncertainty continues to lead to further selling. U.K. GDP contracted for the first time since 1992 in the third quarter led by a 0.3% in the service sector which accounts for 75% of growth. Meanwhile, the Euro-Zone PMI fell to its lowest level on record as a drop in new orders has dimmed the outlook for manufacturing and services.
DAX 4092.89 -426.81 -9.443%
German stocks continued to decline as global recession concerns mount, as companies across the board were trading lower today. Losers included E.ON AG (EOAN GY): Germany's biggest utility, SIEMENS AG (SIE GY): Europe's largest engineering company, and VOLKSWAGEN AG (VOW GY): Europe's largest carmaker down 26.86 points.
FTSE 100 3739.28 -348.55 -8.527%
The FTSE traded lower led by banks and oil companies. Losers included HSBC HOLDINGS PLC (HSBA LN): Europe's biggest bank by market value and BP PLC (BP/ LN): Europe's second-largest oil company.
CAC 40 3009.19 -301.68 -9.112%
The CAC trading lower led by TOTAL SA (FP FP): Europe's third-largest oil company and BNP PARIBAS (BNP FP): France's largest bank.
IBEX 8146.10 -665.10 -7.548%
Spain’s IBEX was trading lower led by TELEFONICA SA (TEF SM): Europe's second-largest phone company and BANCO SANTANDER SA (SAN SM): The largest bank in Spain which extended losses from yesterday.
S&P/MIB 19387.00 -1674.00 -7.948%
Italy's S&P/MIB Index was lower led by ENI SPA (ENI IM): Italy's largest oil company and INTESA SANPAOLO SPA (ISP IM): Italy's second-biggest bank.
Written by John Rivera, Analyst
The U.S. equity markets may be headed to one of the worst days in history as futures are stuck at their limit after a massive sell off in Asian and European markets.
What To Watch For In The US Session
• Futures At Limit, As Risk Aversion
• Risk Aversion Rampant
• Existing Home Sales On Tap
Stocks Futures At Limit After Rampant Risk Aversion Sinks Asian And European Markets
The U.S. equity markets may be headed to one of the worst days in history as futures are stuck at their limit after a massive sell off in Asian and European markets. Fears have reached extreme levels which have seen a flight to safety. The Yen rose to its highest level in thirteen years against the dollar as the carry trade continues to unwind. Fundamental factors may not be in play today as panic grips investors as a global recession is becoming a reality. The U.S. existing home sales report is due to cross the wires and the expected rise in purchases may do little to generate bullish sentiment. The housing market slump has been at the root of the current crisis and any positive news from the sector would be welcomed. Today OPEC announced that they will cut production by 1.5 million barrels per day starting in November. Despite the expected decline in supply oil prices were still trading down over $4.00 per barrel, demonstrating how dismal the outlook for growth has become.
Dow Jones 8691.25
The Dow Jones Industrial Average may see one of its biggest one day declines as the dour global growth outlook. You might expect energy stocks to receive a boost from the OPEC announcement, but oil prices continuing to sink is discounting the impact. Also, the dollar continued strength will only lower profit expectations for the large multinationals that compose the blue chip index.
NASDAQ 1603.91
The NASDAQ was the only major index to trade lower yesterday and today’s events will only sink it further. The tech laden index could break below the October 10 low of 1542 leaving the 2003 low of 1,270as the next major support level. Ultimately expectations for oil prices will increase and the expected boost to consumer spending from lower gas prices will be lowered and begin to weigh on consumer related stocks.
S&P 500 908.11
The S&P 500 s looking at a lower open as lowered growth expectations have weighed on all sectors. However, the ViX index has fallen to 64 from the days high of 79, which could be a sign that the panic is abating.
Equities Freefall As Evidence Mounts For Global Recession.
Panic gripped equity markets as data continues to point to an extended global recession. All major indexes in Europe were trading down over 7% as the race to the bottom continues. The inability of analyst to asses an impact on the recent frozen credit markets has left traders in the dark and the uncertainty continues to lead to further selling. U.K. GDP contracted for the first time since 1992 in the third quarter led by a 0.3% in the service sector which accounts for 75% of growth. Meanwhile, the Euro-Zone PMI fell to its lowest level on record as a drop in new orders has dimmed the outlook for manufacturing and services.
DAX 4092.89 -426.81 -9.443%
German stocks continued to decline as global recession concerns mount, as companies across the board were trading lower today. Losers included E.ON AG (EOAN GY): Germany's biggest utility, SIEMENS AG (SIE GY): Europe's largest engineering company, and VOLKSWAGEN AG (VOW GY): Europe's largest carmaker down 26.86 points.
FTSE 100 3739.28 -348.55 -8.527%
The FTSE traded lower led by banks and oil companies. Losers included HSBC HOLDINGS PLC (HSBA LN): Europe's biggest bank by market value and BP PLC (BP/ LN): Europe's second-largest oil company.
CAC 40 3009.19 -301.68 -9.112%
The CAC trading lower led by TOTAL SA (FP FP): Europe's third-largest oil company and BNP PARIBAS (BNP FP): France's largest bank.
IBEX 8146.10 -665.10 -7.548%
Spain’s IBEX was trading lower led by TELEFONICA SA (TEF SM): Europe's second-largest phone company and BANCO SANTANDER SA (SAN SM): The largest bank in Spain which extended losses from yesterday.
S&P/MIB 19387.00 -1674.00 -7.948%
Italy's S&P/MIB Index was lower led by ENI SPA (ENI IM): Italy's largest oil company and INTESA SANPAOLO SPA (ISP IM): Italy's second-biggest bank.
