The Early Look: Futures Down Hard in Front of Data

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The Early Look

Here’s a brief look at the pre-market action…

Good morning. It is fairly ugly so far today with a lot riding on the U.S. employment data.

Let's look at what the FT has as major headlines:

• Crude oil prices slide below $100 (Brent)
  
• China data send chill across Asian stock markets
  
• Global stocks investors head for exits
  
• Investors rush into haven bonds

Asian markets were down -1.2%, led by the late day sell-off in the U.S. and weak China PMI data.

Europe is trading down again, off 1.6%, with Germany (!) one of the weaker markets, which is a bit of a surprise, off -2.5% as we write this. (For some odd reason Spain is only European market showing green, barely.)

Germany's two-year note has traded into negative territory, showing the rush to safety. Eurozone unemployment hit record levels since 1995, at 11%. Euro area PMI also very weak at around 45.

U.S. futures off about -1.0% as of now. It is very relevant however that the S&P futures appear to have put in a "hold" at the 1292 area, which basically equates to a much watched line in the sand on the SPX at 1292-1296. (It is sort of ironic that CNBC has Alan Greenspan on today with all the stress in the global markets.)

Heavy U.S. data today, led by the jobs report:

• Nonfarm Payrolls: 8:30 AM
  
• Personal Income and Spending 8:30 AM
  
• PMI Manufacturing 9:00 AM
  
• ISM Manufacturing 10:00 AM
  
• Construction Spending 10:00 AM

Good Trading!
David W. (aka The Underground Trader)

Pre-Game Indicators

Here are the Pre-Market indicators we review each morning before the opening bell...

• Major Foreign Markets:
  • Australia: -0.41%
    
  • Shanghai: +0.05%
    
  • Hong Kong: -0.38%
    
  • Japan: -1.20%
    
  • France: -1.41%
    
  • Germany: -2.38%
    
  • Italy: -0.50%
    
  • Spain: +0.38%
    
  • London: -0.67%
  
  
• Crude Oil Futures: -$2.25 to $84.28
  
• Gold: -$12.50 to $1551.70
  
• Dollar: higher against the yen , euro and pound
  
• 10-Year Bond Yield: Currently trading at 1.530%
  
• Stock Futures Ahead of Open in U.S. (relative to fair value):
  • S&P 500: -15.37
    
  • Dow Jones Industrial Average: -111
    
  • NASDAQ Composite: -27.48

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