Archives of “Stock market crashes” tag

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Another sharp day down in the major US indices

  
Analysis, PODCAST, US Market
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Yields fall to new lows

The risk off flows continued in the US stock market and debt market.
The Dow industrial average was down over 1000 points at 1 point during the day. The S&P index fell below the 3000 level briefly before rebounding in the last hour of trading.
In the US debt market yields resumed their downward bias after yesterdays modest rebound.
The final numbers for the major indices are showing:
  • S&P index -106.18 points or -3.39% at 3023.94. The low price extended to 2999.83. The high was up at 3083.04
  • NASDAQ index fell -279.49 points or -3.10% at 8738.59. The low price reached 8677.387. The high price extended to 8921.078
  • Dow industrial average fell minus this 969.58 points or -3.58% at 26121.28. The low price extended to 25943.33. The high price reached 26671.92
In the US debt market the 10 year yield fell to a new record low level of 0.898%. It is currently trading at 0.91%. That is still down -14.2 basis points on the day. The yield curve flattening a bit to 32.49 basis points from close to 36 basis points the close yesterday, but all maturity levels fell by over -10 basis points.

US yields tumbled lower

Dollar falls after 50 basis point cut by the Fed

  
  Analysis
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Stocks reverse losses

The dollar is falling after the 50 BP cut by the Fed:

EURUSD:  The EURUSD has moved up to retest the highs from yesterday at 1.1184 and stalled the price has backed off a bit (into the mid 1.1160s).
USDJPY:  The USDJPY is sitting in the range after a small dip to new session lows. The price moved to 107.55. The lows from yesterday are down at 107.350 and 107.396.  The price is moving higher (or slow to move lower) as “risk on” flows are helping that pair
GBPUSD: The GBPUSD is moving to a new session high and looks toward the falling 100 hour MA at 1.28417.  The new high for the day reached  1.28235.
AUSUSD: The AUDUSD has moved to a new session high continuing the run after the RBA rate decision. The price is looking toward the 100 bar MA on the 4-hour chart at 0.66386.  Earlier today, the price extended above its 200 hour MA at 0.65743 for the 1st time since Feb 17th.

US Major indices down hard again (For us nothing new ………..as expected )

  
Analysis, US Market
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Dow and S&P down over 3%. 4th day of declines in a row

The US stocks are closing down sharply for the 2nd day in a row . The Dow and S&P  have the worst 2 day decline since February 2018. The Dow has plunged more than 1900 points in 2 days.  The Nasdaq index also moved into and closed in the red for the year (below a 8972.60).
The final numbers are showing
  • The S&P index fell 97.68 points or -3.03% at 3128.21. The high reached 3246.99. The low extended to 3118.77
  • The Nasdaq index fell -255.66 points or -2.77% at 8965.61. It’s high reached 9315.25. The low extended to 8940.488
  • The Dow fell 879.44 points or -3.15% at 27081.36. The high reached 28149.20. The low extended to 26997.62.
After the close, Disney announced that is the CEO Bob Iger would be stepping down.  He will be replaced by Bob Chapek effective immediately.

Dow tumbles more than 1000 points. Worst day since Feb 8, 2018

  
Analysis, US Market
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S&P worse day since December 2018

The Dow is closing down over 1000 points on the day. It is the workstations February 8, 2018. The S&P index at its worst day since December 2018.  The Dow, S&P and Nasdaq each fell over 3.3% on the day with the NASDAQ hit the hardest at -3.71%.
The Dow and the S&P are now negative on the year:
  • Dow -2.02%
  • S&P index, -0.15%
  • The Nasdaq index is still up on the year at +2.77%
The final numbers are showing:
  • S&P index -111.82 points or -3.35% at 3225.93.  The low price for the day reach 3214.65. The high extended to 3259.81.
  • Nasdaq index fell minus 355.309 points or -3.71% at 9221.28. The low for the day reached 9166.00. The high reached 9322.879.
  • Dow fell -1031.33 points or -3.56% at 27961. The low for the day reached 27912.44. The high for the day was up at 28402.93

Big losers on the day include:

  • United health, -7.87%
  • AMD, -7.83%
  • Tesla, -7.49%
  • Schlumberger, -7.4%
  • Nvidia, -7.13%
  • Delta airlines -6.31%
  • Twitter, -6.29%
  • Wynn Resort, -6.03%
  • Intuitive Surgical -5.38%
  • Morgan Stanley, -5.21%
  • Charles Schwab, -5.19%
  • FedEx -5.16%
  • Citigroup, -5.10%
  • American Express, -4.97%
  • Cisco, -4.95%
  • Visa, -4.82%
Are there any winners today?
  • Gilead, +4.66%
  • US steel, +1.73%
  • Chewy, +1.3%
  • First Solar, +1.25%
  • Verizon, -0.3%. Verizon was the strongest of the Dow 30 stocks
  • General Mills only fell -0.37%

 

European shares close mostly lower but off lows for the day

  
Analysis, Global Indices
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German DAX, -0.16%, France’s CAC, -0.36%

The major European indices are now close for the day and indices are closing lower but well off the lows for the day. The provisional closes are showing:

  • German DAX, -0.16%. It was as low as -1.26%
  • France’s CAC, -0.36%. It was as low as -1.25%
  • UKs FTSE 100, -1.25%. It was as low as -1.69%
  • Spain’s Ibex, -0.16%. It was as low as -1.47%
  • Italy’s FTSE MIB bucked the trend and rose by 0.19% That is up from a low of -1.10%.
In debt market, the benchmark 10 year yields are mostly lower with the exception of the UK. The ranges and changes are currently showing:
The European 10 year yields are mostly lowerIn other markets:
  • Spot gold is trading up $10.07 or 0.64% $1576.09
  • WTI crude oil is up $0.27 or 0.53% of $51.45
in the US equity market, the earlier declines in stocks have been mostly raised in the broad indices at least. The Dow is still negative:
  • S&P index is down -1.5 points or -0.5% at 3378. The hi reached 3380.36
  • NASDAQ index is unchanged at 9725.40. The high reached 9732.87.
  • Dow is down 78 points or -0.27% at 29471.4.
In the US debt market, yields are off lows but still remain modestly lower on the day.
US yields are still lower but off the lowest levels
The ranking of the major currencies shows the GBP is the strongest and the NZD is the weakest.

The NASDAQ and S&P close at record levels

  
Analysis, US Market
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Give up most of gains. Dow ends unchanged

The NASDAQ and S&P index are closing at record levels. That is the good news. The bad news is the major indices are closing well off the highs for the day.
The final numbers are showing:
  • The S&P index is closing up 5.68 points or 0.17% at 3357.77. The high reached 3375.63. The low extended to 3352.72
  • The the NASDAQ index is closing up 10.552 points or 0.11% at 9638.94. The high reached 9714.738. The low extended to 9617.211
  • The Dow fell -0.48 points to 29276.34. The high reached 29415.39. The low extended to 29210.47.
At the highs, the S&P index was up 0.70%, the NASDAQ index was up 0.90% and the Dow industrial average was up 0.47%.

China will limit short-selling on market reopen on Monday

  
  Analysis
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China will not allow short selling on their stock markets when they reopen for trade on Monday 3 February 2020

The information comes via unnamed sources cited at Reuters . saying China’s regulator (China Securities Regulatory Commission (CSRC)) had issued a verbal directive to brokerages to not permit clients selling borrowed stocks.
  • It was not clear if the suspension – which was first reported on Sunday by Chinese media outlet 21st Century Business Herald – would be extended beyond Monday, one of the sources said.
Over the weekend Adam outlined various other stabilisation measures being taken in China:
  • China unveils economic measures in effort to promote calm with markets set to re-open
On the PBOC cash injection, its not as big as it seems:
  • PBOC to inject cash funds today
Its going to be an “interesting” welcome to the new year for financial markets in China today.

Markets and the Pathogen in the Week Ahead

  
Analysis, Forex
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The infectious and mortality rates of the new coronavirus have become the main force driving the pendulum of investor sentiment toward fear. The move is all the more dramatic as the investors had been positioned for a continuation of the historic bull market in equities and eager to take on new risks.

The coronavirus has surpassed the earlier precedents of SARS (2003) and the Swine Flu (2009). The World Health Organization declared an international health emergency, which will free up resources and boost efforts to contain the pathogen. It took roughly 20 months to devise a vaccine for SARS, and it is estimated that a vaccine is possible within a month or so now to begin the testing process. Although China is expected to return from the extended Lunar New Year on February 2, more than a dozen provinces and cities will be closed several days longer, which ballpark estimates suggest are responsible for a little more than 2/3 of GDP and 3/4 of exports. Supply-chain and business disruptions will likely last longer still.

Investors fear that the health crisis will turn into an economic crisis. Although President Xi is understood to be the strongest Chinese leader in a generation, the challenges that China faces are immense: US rivalry and trade conflict, Hong Kong, Taiwan, and a highly leveraged domestic economy underpinned by a deteriorating demographics. China recently reported its birthrate fell to a record last year. Still, some argue that the situation is even more dire as the official figures exaggerate both the population and the birth rate. More monetary and fiscal stimulus is expected to be delivered to cushion the impact. Some forecasts show the Chinese economy slowing to around 4.5% in Q1 20 from 6.0% in Q4 19.

Since the onshore yuan (CNY) stopped trading for the holiday, the dollar appreciated by a net of a little less than 1% against the offshore yuan (CNH). A catch-up move of roughly the same magnitude would bring the greenback toward CNY7.0. While the last time the dollar rose through that threshold, the US accused China of currency manipulation, this time is considerably different. Moreover, of all times, this is the time when China could likely get away with manipulation if it wanted. It is not just because of the macro shock, but also because the US has played the card once and relatively quickly reversed itself. (more…)

Stocks end ugly as weekend coronavirus fears can’t slow the slide

  
Analysis, US Market
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Dow down -600 points/-2.09%

The US stocks end an ugly day near the lows for the day. The Dow industrial average fell by over 600 points/2%. It was the worst day since August 23.  Moreover the Dow ended the month lower for the 1st time in 5 months. For the S&P it had their worst day since October 2 . The Dow ended the month lower for the 1st time in 5 months.  The S&P and NASDAQ had their worst start to the year in 5 years.  You get the picture.

The final numbers are showing:
  • S&P fell -58.14 points or -1.77% to 3225.52
  • Nasdaq fell -148 points or -1.59% to 9150.94
  • Dow fell -603.41 points or -2.09% to 28256.03.
For the month, the Nasdaq did still and positive for the month, but the S&P and Dow closed the month lower.
  • S&P, -0.16%
  • Nasdaq, +1.99%
  • Dow, -0.99%
In Europe today the major indices also closed near session lows. On what happened and Portugal but the PSI 20 did peek out a gain for the day.
Dow down -600 points/-2.09%

US major indices close at session highs. Reverse near 1% declines

  
Analysis, US Market
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Up and down session but by the end, the bulls prevail

The major US indices are ending the day near session highs and higher on the day. It took nearly all day to get back in the black. At the lows, the S&P index was down -0.93% the low, the NASDAQ index was down -0.97%, and the Dow industrial average was down -0.85%.
At the close, the final numbers show:
  • S&P index it is closing up 10.17 points or 0.31% at 3283.57
  • NASDAQ index is closing up 23.77 points or 0.26% at 9298.93
  • Dow industrial average it is closing up 123.8 points or 0.43% at 28858.25

The European markets did not fare as well. The German DAX fell by -1.41%. The France’s CAC fell by 1.4%.

Below are the percentage ranges for the major European and US indices along with the closing percentage change levels.
Up and down session but by the end, the bulls prevail_
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