OptionEye Macro Outlook - Jan. 7th
Overnight things get rattled again.
Stock futures are sharply lower. The S&P future is down over 44 points and the Dow future is down 375 points.
All of the move is due to a sharp sell off in China after they cut rates. Why is that scary? Well, we are lead to believe from the Chinese government that China is strong and growing at 7% a year. But, you don't cut rates if you are growing at 7% a year. The Chinese stock market halted trading this morning spooking investors further.
Grains look a little lower this morning with corn down 3, beans down 5 and wheat down 4.
The 10 year showing the nerves as well as it rallies forcing yields lower. Currently the 10 year yield is at 2.16%.
Gold getting a boost as it trades above $1100 this morning to $1103.10 up $9.43.
Oil is another story. Once again it is taking a pounding after being off over 5% yesterday. Today it is $1.29 to $32.68.
The economic figures out today will pale in comparison to tomorrow's non-farm payroll numbers. All I can say is that they better be good.