- Asian shares got off to a shaky start on Thursday as investors remained cautious in the face of a fragile recovery in volatile crude oil - a source of much of the recent anxiety about the health of the global economy. Japan's Nikkei stock index .N225 added about 0.5 percent as the yen moved off recent highs.
- US equities recovered almost 2% from earlier in the day to close moderately higher on Wednesday. The DJIA added 0.32%, the S&P 500 put on 0.44% and the NASDAQ gained 0.87%. The S&P hit a morning low of 1891.00 on the back of energy & mining led equity weakness in Europe before reversing strongly.
- Earlier in the day, the first contraction in the US services sector in over two years put pressure on the market
- Markit's flash services PMI fell to 49.8 in January (mkt est 53.5)
- New US single family home sales fell -9.2% in January (mkt est -4.4%), the first contraction since Oct 2013
- In Europe, stock markets fell sharply amid further weakness in the mining sector (BHP -8.4%, Glencore -10.1%)
- Stocks will likely remain tied to oil price moves Thursday, but stabilization in the commodity should support gains.
If equities rise, the S&P 500 will have a chance at testing its resistance level of 1,950.
Reference: CNBC, Reuters, MKS News
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