January 7, 2016: S& P down -2.37%. Nasdaq down -3.03%
The US equity indices got hammered today with the NASDAQ down 3.03%. The S&P down 2.37% and the Dow industrial average down 2.32%. The indices did not go out on the lows, but the fall is not pretty.
After 4 days of trading the NASDAQ is leading the way to the downside at -6.35%, the S&P is down 5.23% and the Dow industrial average is down 4.94%. CNBC calls the start to the year the worst start EVER.
Things could be worse. The German DAX is down -7.10%. The Shanghai composite is down -11.7% and the tech heavy Shenzhen composite out of China is down -15.19%.
Crude oil futures tested $32.00 per barrel. It is currently off those lows at 33.16. Gold is trading around 1.109 up from yesterday's close at 1093.42.
US two-year note yield 0.948, -3 BP
US five-year note yield 1.60%, -4 BP
10 year yield 2.145% , -2 BP
30 year yield 2.925%, -1 BP
In new day trading the focus will be on the yuan fixing and the China stock market. Yesterday's fixing for onshore USDCNY came in at 6.5646. The offshore USDCNH is trading at 6.6875. So the market is leaning toward increased yuan weakness and a potential devaluation. That risk may extend into the weekend.
