Stocks are Sinking in Asia and around the Globe

Lou Brien  |

Stocks were very weak in Asia. The Hang Seng fell 3.8%; the Nikkei was down 3.7%, it is now down more than twenty percent since a peak last August; Australia fell one and a quarter percent; and Shanghai was off one percent. European indexes are on offer this morning, with the Footsie down a bit more than three percent and the DAX off a bit less than three percent. US stock futures are down one and a half percent, or so, as I write.

*Foreign Direct Investment into China fell 5.8% in December from a year earlier, down to $12 billion for the month. However, FDI in China was up 6.4% for all of 2015 to $126.27 billion. Outbound direct investment by Chinese companies was up 6.1% last month to $13.89 billion on the month.

*The December reading of Germany’s Producer Price Index is -0.5% on the month and -2.3% on the year; both results were a tenth more deflationary than forecast.

*The January reading of Switzerland’s ZEW Survey of Expectations of Economic Growth is -3.0, down from 16.6 the month before, according to Credit Suisse. It is the weakest result since last July.

*The November reading of the UK Unemployment Rate is 5.1%, the lowest level in a decade; it is a tenth lower than expected. In December the net change in the number Jobless Claims is -4.3k; it was forecast to increase 2.8k.

*US mortgage applications were up 9.0% in the week ended January 15, according to the Mortgage Bankers Association. Applications for Purchases were down 1.6% on the week, but those for Refinancing were up 18.7%.

*The weekly report on chain store sales from the Retail Economist showed a decline of 0.1% on a week on week basis for the week ended January 16. Sales are said to be up 2.5% for the week when compared to the same week from a year ago. The Johnson Redbook report on the same thing is due out at 7:55am CST.

*Goldman Sachs Q4 eps, ex-this/plus that, is $4.58, well above the estimate for $3.57.

*The December reading of the Consumer Price Index is due out at 7:30am CST. Headline CPI is expected to be unchanged on the month and +0.8% on the year, while the CPI Core rates are forecast to be +0.2% and +2.1%, respectively. Also due out at 7:30am is the December reading of Housing Starts, which is expected to be 1200k, or up 2.3% from the month before; the estimate for Building Permits is 1200k as well, but that would be down 6.4% on the month.

*The Bank of Canada rate announcement is due out at 9:00am CST; they are expected to stand pat at 0.50% with their overnight lending rate.

*BTW, because of the holiday on Monday the weekly report on energy inventories will not be released today; it’s is set for Thursday.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


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