· The S&P 500 has gone sideways in early trading during the trading session on Tuesday, as markets are treading water near the 2720 handle. The market seems to be very technically driven every 25 points or so, so now it appears that the 2725 level has offered short-term resistance.
Stocks are deftly difficult to own in America right now with the talks of trade tariffs and an expanding trade war with the Chinese, and possibly even the Europeans heating out. At this point, traders seem to be in a mood to sell first and ask questions later. I think it is because of this that eventually we will find a strong value proposition in these markets.
· European markets opened mixed Wednesday morning, while oil prices climbed after the U.S. moved to pressure allies to stop buying Iranian crude.
The pan-European Stoxx 600 was flat shortly after the opening bell, with sectors and major bourses pointing in opposite directions.
· Asian share markets were under stress on Wednesday as further falls in Chinese stocks and the yuan sent ripples across the region, while oil climbed as the United States leaned on allies to stop buying Iranian crude.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS lost another 0.6 percent after touching a two-year trough on Tuesday.
· Japan’s Nikkei share average dropped on Wednesday after higher oil prices hurt rubber products makers, airlines and shippers, while companies’ going ex-dividend added to the market’s broader weakness.
The benchmark Nikkei closed down 0.3 percent at 22,271.77, while the broader Topix eked out tiny gains of 0.02 percent to finish at 1,731.45.
· China stocks extended a bruising sell-off on Wednesday, with blue chips slumping to their worst loss in over a year on growing concerns about the economic outlook amid a bitter trade dispute with the United States and a faltering yuan.
The blue-chip CSI300 index fell 2.1 percent, to 3,459.26 points, the lowest level since last May, while the Shanghai Composite Index plumbed a fresh two-year low before closing down 1.1 percent at 2,813.18 points.
Reference: Reuters, CNBC, FX Empire
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