NEW YORK (WSI) – Closing in deep red for US stocks with the Dow Jones leaves on the ground more than 300 points, the 176%, to 17,265. Also hurt the S & amp; P 500 and the Nasdaq to leave on the ground, respectively, 1.96% and 2.2%.
The trend of the last five days of exchanges and ‘was dictated by slip of oil. Today to add tension between investors and ‘also the liquidity crisis’ that is touching the bond market for high returns.
Not by chance the activist investor Carl Icahn has just defined that market as a “powder keg ready to explode.” The nervousness stems from the fact that Third Avenue Management has decided not to grant more ‘ransoms to fund high-performance with a value of 800 million dollars, the group has no liquidity’ to repay customers. It ‘a sign of how retail investors are withdrawing their money from risky funds to step more’ fast for more than a year.
For the sixth day in a row oil New York closed down, the strip more time ‘Long March. The January contract on the Nymex lost $ 1.14, 3.1%, to $ 35.62 a barrel. The decline weekly and ‘equal to 10.88%. The sell-off and ‘started Friday’ last year, when OPEC decided to leave output unchanged despite global stocks in excess. Only those in the United States is on top of 80 years.
It has not helped the news yesterday that the cartel of producing countries registered a production in November, its highest level in three years. The trend is not ‘helped by a strong dollar it’ by a particularly mild autumn. Investors fear that the bottom of the barrel has not yet been touched since the Brent and ‘near the lows of the Christmas Eve of 2008.
Today the International Energy Agency in the uproar by putting in guard on the risk of a worsening of the situation in the coming year with regard to world stocks. According to the agency, the growth in world demand in 2016 will slow ‘to 1.2 million barrels per day after coming to 1.8 million this year.
On the currency market, the’ euro is slightly higher and approaches again to share $ 1.10, while the ratio usd / yen is down -0.12% to JPY 121.42.
The macroeconomic environment today is not enough to support the lists. Spotlight on retail sales in November, rose to the level ‘core’ of 0.2% compared to October of the increase is greater since last July but is still below analysts’ estimates for a + 0.3%. The low fuel prices have curbed the data with sales in gas stations to drop by 0.8% on a monthly basis and 19.9% on an annual basis. Sales excluding car, fuel, construction materials and food are increased by + 0.6%, exceeding even the weather.
The data, however, I am not as optimistic as you might think at first glance, according to Chris Williamson, chief economist at Markit. “The background trend is weakening , which confirms the idea that the costs are not growing at the pace hoped for and that therefore the Fed will have to be careful with the timing which will impose restrictions on the economy in the future. The rhythm of the cycle riazli rates will be gradual. “
Producer prices last month rose a monthly basis for the first time since July: there ‘was a + 0.3% (greater increase from June), as much as the core component. The expectations were respectively for a given unchanged and for a + 0.1%. On-year producer prices were down 1.1%, the tenth annual decline in a row. Those cores are up by 0.5%. However, there are few signs of inflationary pressures.
The crucial week for Wall Street will be next when, at the end of a meeting scheduled for 15-16 December, the Fed will most likely announce the first rate hike in almost 10 years.
DuPont in the viewfinder of sales (-5%) dell’agrichimica giant announced a merger with Dow Chemical having a value of $ 130 billion. Under the terms of the agreement, shareholders will receive one share of Dow DowDuPont for each security owned. DuPont shareholders will receive 1.282 titles DowDuPont for each security owned. It is a merger of equals, or the shareholders of the two groups will receive 50% each of the shares of the new entity. The merger will generate synergies of about $ 3 billion. The transaction is expected in the second half of next year.
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