Global Risk Off: China Reenters Bear Market, Oil Tumbles Under $30; Global Stocks, US Futures Gutted

Zero Hedge ^ | January 15, 2016

[Zakeet]

Bulletin Headline Summary From Bloomberg and RanSquawk

• Amid the fresh downturn in risk sentiment, there is one standout move to highlight this morning; the USD/CAD ramp through 1.4400 and 1.4500
• WTI and Brent are below USD 30/bbl, with analysts noting that the UN are expected to approve the removal of Iranian trade sanctions as soon as Monday
• Highlights today include US retail sales, PPI final demand, empire manufacturing, industrial production, business inventories and University of Michigan sentiment as well as Fed's Dudley, Williams and Kaplan
• Treasuries gain as global stocks plunge led by China, crude at 12-year low; 10Y has gained every day this year but one, yield falling to 2.05% from 2.269% on New Year's Eve.
• Chinese shares fell into a bear market for the second time in seven months, wiping out gains from an unprecedented state rescue amid waning confidence in the government's ability to manage the country's markets and economy
• China's broadest measure of new credit surged the most since June as companies increase borrowing on the corporate bond market, underscoring a shift away from reliance on state-backed banks for funding.
• With oil dropping below $30 a barrel, producers in western Europe's biggest crude exporting nation are now considerably worse off than they were in the darkest hours of 2008
• Norway's oil "industry is in a crisis now, we can't deny that," Bente Nyland, director general of the Norwegian Petroleum Directorate, told Bloomberg
• Analyst earnings estimate cuts outnumbered upward revisions by the most since 2009 last week, according to monthly data from a Citigroup Inc. index
• As a growth scare fuels turbulence in global markets, investors are cutting wagers on how high the Fed will raise policy rate this year
• The Swiss National Bank considered replacing a cap on the franc against the euro with a link to a basket of currencies, an option policy makers already entertained when they introduced the ceiling in 2011
• Donald Trump has not just survived six GOP debates but started to shine; last night he added substance to his trademark charisma to defend his own attacks on China, embrace criticism that he's appealing to voters' anger, and fend off incoming fire from rivals across the debate stage
• There's a reason Hillary Clinton and Bernie Sanders continually bash the financial industry: "Anti-Wall Street" and "socialist" are each chosen by more than 40% of those planning to attend their party's Iowa caucuses as words or phrases that describe them well
• Sovereign bond yields lower. Asian stocks and European stocks plunge again; equity-index futures lower with SPX down by nearly 2%. Crude oil falls, Brent and WTI both below $30/bbl; copper lower, gold higher

[Zakeet]

Bottom line: the world economy is very close to free fall!

[Farmer Dean]

I’d say that now is the time to buy your year’s worth of food if you possibly can.

[ProtectOurFreedom]

There's a reason Hillary Clinton and Bernie Sanders continually bash the financial industry: "Anti-Wall Street" and "socialist" are each chosen by more than 40% of those planning to attend their party's Iowa caucuses as words or phrases that describe them well

This sure looks like a replay of 2008 shaping up. We are going into a summer of global economic crisis engineered by seven years of zero interest rates and huge oil over-supply (driven by technology). Come October, the only thing that will possibly save us will be socialism -- hello President Sanders. Can the Dems build enough of a coalition from their traditional supporters to pull this off? Will blacks, gays, women, Hispanics, lawyers, unions, teachers, and baby-killers all buy into socialism?

[voicereason]

I honestly believe there will be some of global reset. The charade can only go on for so long and the longer it does, the more painful and harsh it will be for everyone. Let the hammer fall already.

[Popman]

I honestly believe there will be some of global reset. The charade can only go on for so long and the longer it does, the more painful and harsh it will be for everyone. Let the hammer fall already.

No need to rush things, Cruz or Trump aren't in office yet...

World wide crashes only are allowed to happen under a GOP POTUS...

Then the hammer will fall..

[John W]

DJIA Down 337.14(2.06%) 9:33AM EST

[John W]

Down 400.11(2.44%) 11:03AM EST