Heavyweight mining stocks slumped back yesterday as investors took profits after a post-US election bounce in metals prices lost momentum. Investors had piled into miners and industrial metals on bets Donald Trump will drive through an infrastructure bonanza in the US, last week, triggering copper’s best performance since 2011.
The red metal’s advance was halted, with prices slipping back 3.2 per cent to $5,360 a tonne on the London Metal Exchange. Speculators had cashed out of commodities futures markets in China earlier in the day amid jitters that regulators might clamp down on price swings………………………………………..Full Article: Source

It’s over. The earnings recession that has plagued investors for the past two years, and acted as a handbrake on the local sharemarket whenever it looked like it could really take off, is finished and the major S&P/ASX 200 Index is now on track to make its way to 6000 by the end of next year.
That’s the view of Credit Suisse equity strategist Hasan Tevfik and if he’s right it will have some very important implication for portfolios. The last couple of years have seen more defensive portfolios outperform growth-oriented investments, but if interest rates in the US are heading higher and profits are about to improve it should cause a few investors in both managed funds and superannuation portfolios to look at their strategies…………………………………..Full Article: Source

When commodity exchanges launch options contracts, it may lead to some cannibalization, since they are far cheaper to trade and provide higher leverage vis-a-vis futures contracts.
Multi Commodity Exchange of India Ltd’s (MCX) shares have risen by around 40% in the past three weeks. Investors are evidently excited about Securities and Exchange Board of India’s (Sebi) decision to permit trading in commodity options, besides drooling over rumours that Chicago Mercantile Exchange is likely to pick up a stake in MCX………………………………….Full Article: Source

Two years after triggering an oil price war, Saudi Arabia has seemingly had enough of cheap crude amid budget pressures, fear of a future supply shortage, and as it seeks to offload a stake in state-owned producer Aramco.
The change in tone comes as OPEC and other producers such as Russia may resume talks on stabilizing output when they meet in Algeria later this month, after a similar effort to boost oil prices collapsed in April due to Saudi-Iranian tensions. “The Saudis are going to Algeria for a freeze,” said a source in the Organization of the Petroleum Exporting Countries who is familiar with the matter and declined to be identified………………………………………..Full Article: Source

The sky-scraping performance of Australian gold mining stocks this year has led to the inevitable questions of when to expect a correction, but analysts say there’s potential still to be realised. Of the biggest names in the index, Evolution Mining has risen 86 per cent this year to date, Newcrest Mining 83 per cent, Regis Resources 74 per cent and Northern Star Resources 69 per cent.
Analysts at Morgan Stanley say globally, total shareholder returns for 2016 so far for precious metal shares have hit 169 per cent, sending valuations at or above historical highs………………………………………..Full Article: Source

European stocks finished firmly in the red on Tuesday, as strong performances in oil, mining stocks and sterling failed to electrify markets. The pan-European STOXX 600 wavered throughout trade, ending down 0.79 percent provisionally. Most sectors closed in negative territory; however basic resources ended up 1.3 percent.
On the bourses front, the U.K.’s FTSE 100 fell 0.68 percent, as sterling rose against the dollar. Meanwhile, France’s CAC 40 closed 0.83 percent down and Germany’s DAX slipped 0.58 percent………………………………………..Full Article: Source

All three major U.S. stock indexes close at records; miners, chemical producers and industrial companies were among the biggest gainers. U.S. stocks advanced to records Monday, led by gains in commodity-linked shares as crude oil prices reached a one-month high.
All three major U.S. stock indexes closed at all-time highs on the same day Monday, a feat they accomplished Thursday for the first time since 1999. The gains have come during relatively light trading. Monday’s U.S. stock-trading volume was the lowest since the Friday before the Memorial Day holiday………………………………………..Full Article: Source

This year has been a volatile one for markets. U.S. equities started the year by plunging over 15% as geopolitical concerns and an oil crisis weighed on investor sentiment. However, from February’s lows, U.S. equity markets have shrugged on the Brexit saga and gone on to all-time highs. However, despite the lofty levels of equity markets, money into commodities continues to outpace equities.
Data from iShares show money flows into commodities continue to trend higher at a steady pace; and, aside from a brief period in late April, the flows consistently have outpaced equities, which shows just how big the 2016 moves in commodities have been. Gold, Palladium and Silver are all over up 30% for the year and despite its recent slide, Oil remains 13.9% higher on the year………………………………………..Full Article: Source

Indonesian mining shares have been enjoying a rally in recent months on the back of price rises for major commodities such as coal, gold and nickel. The Indonesia Stock Exchange’s mining index has risen 26% since the beginning of June, outperforming the benchmark Jakarta Composite Index, which rose 11% in the same period.
Major Indonesian miners Adaro Energy, Aneka Tambang and Tambang Batubara Bukit Asam led the increases. Coal miner Adaro earlier this week proudly announced that its share price “has risen back to our IPO [initial public offering] level.” Falling coal prices over recent years had dragged down the share price, which hit its lowest level in January………………………………………..Full Article: Source

Saudi Arabia’s oil and natural gas production and drilling activities are unaffected by crude prices at current levels, the state-run producer’s chief executive officer said, signaling that the world’s biggest oil exporter will continue to protect its market share.
Saudi Arabian Oil Co., known as Saudi Aramco, will keep investing in oil projects for the long term, and its sales to buyers in East Asia are rising, Amin Nasser told reporters Wednesday at a signing ceremony for a gas-processing plant near the eastern city of Jubail………………………………………..Full Article: Source

The bulls are back in the global commodities market, with multiple commodities gaining from their 13-year lows. The upturn in the commodity market has helped the stocks of metal companies to outperform the broader market.
So, does it make them an opportunity? “We are seeing metal prices firm up. So if this holds, we will have to take positions in that space,” said Deepak Shenoy, Founder, Capital Mind. Metal prices have been flying high buoyed by the depreciation in the dollar and the support from China’s stability………………………………………..Full Article: Source

Stocks may have had a rocky start to 2016, but commodities were practically a four-letter word. How quickly things have changed. In the three months ended May, the S&P GSCI index rose by 18.1%. That marks its best such period since July 2009. The recent period reflected a bounce from the epic washout of the deepest post-war recession, so the recovery is really remarkable.
Energy was the leader of the pack, rising by over 30%. That was its best three-month gain since the summer of 2008 when oil hit its all-time high. It sounds bullish, but is it really? Commodities are outperforming stocks for the first year since – gulp – 2007. That marked the end of a five-year bull market and economic expansion………………………………………..Full Article: Source

Copper dropped and mining stocks led by Freeport-McMoRan Inc. retreated after a Chinese factory gauge contracted and the OECD warned that the global recovery is set to stall this year.
A private index Wednesday showed a 15th straight month of contraction in May for Chinese manufacturing, while the Organisation for Economic Cooperation and Development said the world economy is slipping into a self-fulfilling “low-growth trap.” Manufacturing in the 19-nation euro area barely grew last month………………………………………..Full Article: Source

Declining commodity prices weighed on Asia’s resource stocks Monday, while the Japanese share market slipped amid a lack of major consensus from the Group of Seven meetings between finance ministers and central bankers.
Energy stocks led losses in much of the region, after crude oil prices fell Friday in the U.S. and continued to slip during Asian trading hours Monday. Tokyo-listed Inpex Corp. finished down 2.2% while Australia’s energy sector was down 2%. Brent crude prices were last down 0.9% at $48.28 a barrel………………………………………..Full Article: Source

New derivative products in the commodity markets are likely to be launched by the Securities and Exchange Board of India in the coming months. Three sub-working groups of the market regulator are looking at various issues relating to commodity derivatives – polling of prices, option limit and eligibility criteria for commodities to qualify for future trading. The groups are expected to submit their reports shortly.
“Once they submit their report, we will hold a meeting and look at possible options,” said NITI Aayog member Ramesh Chand, who also heads SEBI’s Commodity Market Advisory Committee and is currrently working on the issue………………………………………..Full Article: Source

Commodities have had a pretty humbling run recently. In fact, Bank of America Merrill Lynch calculates that long-term returns are now running at the weakest pace since… 1933. Time for the tide to turn? Chief investment strategist Michael Hartnett at the bank writes:
The most bullish argument for commodities today is “humiliation”. Similar to stocks in 2009, the rolling return from commodities is currently at a multi-decade low, indeed the lowest since 1933. And commodity producers and Emerging Markets at least offer the potential for lower rates and higher earnings per share over the medium term. The secular upside for commodities is thus greater than downside. We like gold………………………………………..Full Article: Source

What is far more worrying is that several countries increased fiscal spending in response to the 2009 recession and then failed to reverse the increases as the recession receded. A vast majority of Latin American countries need to trim fiscal spending and undertake fundamental reforms while urging its borrowers not to cut capital investments, according to the Inter-American Development Bank.
The regional economies will remain weak until 2020 unless the countries reform their fiscal policies immediately, the bank said in an annual report released in Bahamas. Weak global growth, a fading demographic boom, lower commodity prices, and deteriorating fiscal positions have hit Latin America hard, plunging countries like Brazil and Venezuela into deep crisis………………………………………..Full Article: Source

Have we hit a bottom yet? Wall Street appears to think that a march higher in the commodities sector may be signaling that the worst is over for the market—at least in the near term.
For many investors, plunging commodity prices have been a sign that all isn’t well in the world. Falling commodity prices, specifically crude-oil prices CLJ6, -0.38% can serve as a sign that global growth is in a state of retrenchment. In the case of oil, many believe it is simply a matter of an unrelenting glut………………………………………..Full Article: Source

Global equity markets rose on Thursday as diminished expectations of U.S. interest rate hikes this year pushed the dollar lower, which in turned boosted the prices of many commodities.
The dollar fell for a fourth day on the latest batch of soft U.S. data, while comments from a U.S. Federal Reserve policymaker on Wednesday were viewed as a sign further rate hikes could be delayed. Those comments were buttressed on Thursday by Robert Kaplan, the new head of the Dallas Fed, who said the central bank should be “patient” on rate increases………………………………………..Full Article: Source

Emerging-market stocks fell the most in a week as oil deepened its decline and concern mounted that the contagion from China’s economic slowdown is spreading. A gauge of developing-nation exchange rates dropped for a second day, led by the Russian ruble.
South African equities slid for a second day as the World Bank said the continent’s second-largest economy is flirting with stagnation. The Ibovespa fell the most since August 2011 as Brazilian commodity exporters including Vale SA slid with raw-material prices………………………………………..Full Article: Source

Saudi Arabia is considering its own Big Bang. The world biggest crude exporter is considering selling a stake in its state-owned company, which controls more than a tenth of the global oil market.
A potential initial public offering is under review for Saudi Arabian Oil Co., also known as Aramco, Mohammed bin Salman, the kingdom’s deputy crown prince, said in an interview with The Economist. A decision will probably be taken in the next few months, he said, without giving further details………………………………………..Full Article: Source

Copper climbed the most in two weeks and nickel gained after China sought to support its stock market following Monday’s rout that sent metal prices tumbling. State-controlled funds in China bought equities and regulators signaled a selling ban on major investors will remain beyond this week’s expiration date, according to people familiar with the matter.
Most metals traded in London and a gauge of mining shares rose. On Monday, copper fell the most in three weeks, helping take an index of six main contracts on the London Metal Exchange to its biggest slump since September after a plunge in mainland China shares triggered a trading halt……………………………………….Full Article: Source

The UK-listed mining sector began 2016 firmly in the red as the price of copper sank to a two-week low, after weak economic data from China triggered fresh concerns about the world’s largest metals consumer. After slumping 24pc last year, three-month copper on the London Metal Exchange tumbled 2.3pc to $4,599, its lowest level since December 18.
Given their reliance on Asian consumption, mining stocks slipped towards the bottom of the blue-chip index after factory activity in China contracted for a 10th consecutive month in December. The Caixin China Manufacturing Purchasing Managers’ Index dipped to 48.2 last month, falling short of expectations that it would hit 49………………………………………..Full Article: Source

Since 2008, stock market behaviour has been affected by unforeseen events, overturning conventional wisdom and reversed the immediate course of investor behaviour. The commodity price collapse and the Chinese yuan devaluation in 2015 is a good example of that. Given such a background, what will 2016 be like? At one level, it could be a return to normal conditions, economy and corporate earnings.
It is too early to talk of a capex revival, but earnings could recover bolstered by low base effect and higher growth; commodity prices could stabilise, having fallen sharply last year. Economic growth could move higher and we are likely to end the year with a far robust economy. But it will still not be close to our expectations leaving some of us disappointed………………………………………..Full Article: Source

U.S. stock index futures pointed to a softer open on Wednesday after two days of intense volatility in oil markets, which have rocked commodity and mining stocks and added to the anxiety ahead of the Fed’s meeting next week. Oil could again be volatile, particularly with 10:30 a.m. ET release of petroleum inventory data expected from the Energy Information Administration.
Other data due for release includes wholesale inventories numbers for October due at 10:00 a.m. ET. The Treasury auctions $21 billion in reopened 10-year notes at 1 p.m. ET. Oil prices rose on Wednesday after American Petroleum Institute data, released after Tuesday’s market close, showed a surprise drawdown in supply, offering the market support amid an ongoing supply glut………………………………………..Full Article: Source

The global commodities rout throttled world stock markets Tuesday, with mining companies retreating on news of massive layoffs at mining giant Anglo American and oil prices hitting fresh multi-year lows.
A global sell-off began in Asia following weak Chinese trade data and deepened after Anglo American unveiled what it billed as a “radical” restructuring in response to weak commodity prices. Equity markets in Paris, London and Frankfurt lost between 1.4 and 2.0 percent, while the broad-based S&P 500 in the US shed 0.7 percent. In foreign exchange activity, the euro edged higher against the dollar………………………………………..Full Article: Source

BHP shares have dropped below $17 each and South32 under $1 for the first time after commodities were crunched again overnight and mining giant Anglo American cancelled its dividend.
Brent oil dipped below $US40 a barrel for the first time since early 2009, before recovering, while iron ore continued its descent, with the Qingdao benchmark shedding another US41¢, or 1.1 per cent, to $US38.65 a tonne. On the London Stock Exchange, investors dumped Rio Tinto, driving the price of its shares down 8.4 per cent, while BHP Billiton dropped a further 5.5 per cent………………………………………..Full Article: Source

Asian equity markets are expected to open in the green on Wednesday, after Wall Street eked out gains on the back of an uptick in commodity prices. U.S. markets closed mostly higher on Tuesday after oil prices and energy stocks jumped, reversing an earlier decline on news of a downed Russian jet near the Syrian border. The downing was read as a heightening of tensions in the Middle East, which helped support the price of oil.
A Russian warplane was shot down near the Syrian border on Tuesday after Turkey claimed it entered Turkish airspace. The state-run Turkish news service Anadolu Agency said the warplane was engaged by two Turkish F16 jets………………………………………..Full Article: Source

Miners and oil majors are offering high, but vulnerable yields. Here are some alternatives. Finding high-yielding stocks couldn’t be easier: simply buy a large-cap mining or oil stock. But as Glencore’s suspension of its dividend last month showed, these yields can be vulnerable, and more cuts are likely to come.
So are there any high-yielding stocks worth owning? Yes. Here, Citywire highlights 10 companies - from giants to minnows - offering at least 25% more than the FTSE All-Share’s current yield of 3.6%. All are held by Citywire-rated managers, and none are commodity stocks………………………………………..Full Article: Source

Stocks were slightly softer as the euro and Bund yields rose after improving bank lending in the eurozone reduced expectations for more stimulus from the European Central Bank. The FTSE Eurofirst 300, a pan-European equity gauge, fell 0.5 per cent, also dragged lower by resources groups as the prices of base metals and oil relapse. The FTSE Asia Pacific index shed just 0.1 per cent.
Both regions have received little impetus from the US, where the S&P 500 was flat overnight and briefly flirted with two-month highs before slipping 2.89 points to 2,030.77 by the close. That leaves the Wall Street benchmark, which tends to determine the global mood, only about 5 per cent below its record hit in May, having bounced 8.7 per cent from its August lows………………………………………..Full Article: Source

Ten years ago, a course on commodity markets would teach students that commodity returns are uncorrelated with the returns of other financial assets. Commodities were praised as excellent portfolio diversifiers, providing financial protection when it is needed most. Since the early 2000s, however, the behaviour of commodity prices has changed in fundamental ways.
Popular investment commodities such as crude oil or gold have shown large price swings that are difficult to explain by economic fundamentals alone. Commodity returns started to co-move with the general stock market. More generally, commodities started to behave no longer like physical assets but more like financial assets. This phenomenon is actively debated in the academic literature as the “financialisation of commodity markets”………………………………………..Full Article: Source

Metal and mining stocks have had a tumultuous year, but Morgan Stanley says the tide is turning and the worst may be over. In a note Wednesday morning, analysts at the bank slapped an “attractive” label on the sector and said valuations are at historically attractive levels.
They raised their recommendation for Rio Tinto and BHP Billiton to “overweight” from “equal weight” and for Anglo American to “equal weight” from “underweight.” They said they see commodity prices rising 19% by 2017, adding this “would be a sharp reversal from the experience in the last 18 months.” Equities exposed to the sector, they said, will likely outperform………………………………………..Full Article: Source

Call it a triple-C market—that is, one dominated by credit, commodities and currencies. A triple-C rating describes a speculative credit well down on the quality scale. In recent days, the market increasingly is looking askance at borrowers of lesser quality, especially those related to commodities.
That reduced esteem for lower-quality credits is hitting the equity market for the simple reason is that stocks never have been so dependent on borrowed money. Nor, for that matter, have commodities. The producers of metals, energy and agricultural goods went heavily into hock to expand production. Cheap credit funded the expansion of supplies not only of energy products but also metals that boomed in the so-called commodity super cycle………………………………………..Full Article: Source

The third quarter has been a bad one for global markets, with a rout in commodities putting the asset class among the hardest hit by China slowdown fears and U.S. interest rate uncertainty. Copper prices plunged to a six-year low earlier this week, while Brent crude oil prices were on course for a 23 percent fall during the period.
“We’ve pushed raw materials down so far, we must be getting to the point where they start to base out,” Marc Ostwald, a strategist at ADM Investor Services, told CNBC……………………………………….Full Article: Source

Global stocks slid to their lowest in more than two years on Tuesday as raw materials prices and emerging markets stayed under pressure. Commodity prices edged up but held near multi-year lows on concern over an economic slowdown in major consumer China.
Mining and trading giant Glencore, whose shares fell by almost a third on Monday on investor concern over its debt levels, eked out gains of 4 percent in London but only after its Hong Kong-listed shares fell 29 percent. Asian commodity merchant Noble lost 11 percent, having at one point in the session fallen by 15 percent to levels last seen in October 2008………………………………………..Full Article: Source

Tumbling commodities prices and worries about China’s economy pulled stocks sharply lower on Tuesday, while bond yields declined and the dollar rose to a two-week high on bets US officials will soon hike interest rates.
Wall Street losses hovered for much of the trading day around 2 per cent on selling driven by falls in oil and copper before easing. European shares were also stung by the commodities sell-off, with the pan-European FTSEurofirst 300 stocks index finishing down 3.3 per cent………………………………………..Full Article: Source

Tumbling commodities prices and worries about China’s economy pulled stocks sharply lower on Tuesday, while bond yields declined and the dollar rose to a two-week high on bets U.S. officials will soon hike interest rates. Wall Street losses hovered for much of the trading day around 2 percent on selling driven by falls in oil and copper before easing.
European shares were also stung by the commodities sell-off, with the pan-European FTSEurofirst 300 stocks index .FTEU3 finishing down 3.3 percent. “Investors are nervous because there is a sense that the Fed knows more than it is letting on regarding the health of the global economy,” said Art Hogan, chief market strategist at Wunderlich Securities in New York………………………………………..Full Article: Source

US stocks dropped on Tuesday as a selloff in commodities dragged down materials shares and Volkswagen suppliers’ shares dropped following the German carmaker’s emissions scandal. S&P materials, down 1.8 per cent, led the decline for the S&P 500, but the selloff was broad-based, with all 10 major sectors lower.
More worries about slower growth in China pushed commodities to two-week lows, with copper prices and industrial metals leading losses. US crude oil also settled lower. Shares of Volkswagen suppliers BorgWarner, Honeywell and Delphi Automotive fell after the German carmaker admitted to cheating on vehicle emission tests………………………………………..Full Article: Source

Mining stocks were getting routed on Tuesday, with a key commodities index dropping to its lowest level in about a month. A rout in the mining sector comes as Credit Suisse downgraded the sector and cut its commodity-price forecasts on the back of growing concerns over a demand slowdown from China.
The Bloomberg Commodity Index BCOM, -0.07% was trading at 87.33, its lowest level since late August and the index has lost more than 16% year to date. Shares of mining companies, specifically metals, have also seen hefty year-to-date declines………………………………………..Full Article: Source

Bets on higher stock-market volatility are at a record high, signaling increasing concern about the outlook for U.S. shares. Wagers by hedge funds and other speculative investors that futures tied to the CBOE Volatility Index will rise outstripped the number of bets on a falling VIX by 37,925 contracts as of Sept. 8.
That’s the biggest net bullish position on record, according to Schaeffer’s Investment Research’s analysis of data from the U.S. Commodity Futures Trading Commission going back to 2005. A bullish bet on VIX futures signifies a belief that investors will be rushing for protection against market downdrafts. The VIX, the market’s “fear gauge,” is based on the prices of S&P 500 options, which tend to rise as stock prices decline………………………………………..Full Article: Source

The volatile trading over the past two weeks claimed many victims, but perhaps the most surprising of which was gold. In theory, gold prices should rise in times of fear and uncertainty, as gold is long considered an unofficial barometer of economic health. And the current dynamics are chock full of fear and uncertainty.
Yet the traditional safe-haven asset was cut down last week, losing 2% of value since Aug. 24 and causing gold stocks and gold miners to tumble as well. The precious metals selloff couldn’t have come at a worse time. Prior to the recent series of red ink, gold prices skyrocketed nearly 7% for the month of August — on pace for the best monthly performance in years………………………………………..Full Article: Source

The global stock rout may have claimed some victims this week, with heavy selling sending the S&P 500 into correction territory, but equity markets can still offer returns for investors. The definition of “correction territory” is when you see a downward move from a recent high of 10 percent or more.
The definition of “bear market territory” is when you have a 20 percent move down over the course of at least 2 months. Down 17 percent since its recent high in April, the broad-based European Stoxx 600 index is now officially in “correction territory”……………………………………….Full Article: Source

Gold has failed to rally in the face of China’s stock market crisis as investors, scorched by a brutal end to the market’s 12-year bull run, chose cash and bonds for safety over bullion while they seek clarity on the timing of a U.S. rate increase. While at first glance, the failure of a “haven” asset to respond may seem odd, this behaviour is by no means unusual.
As a broad rule, bullion tends to benefit from stock market weakness as an alternative asset, but previous equity crashes show the initial price response can be to fall. “In 2008, when Lehman Brothers collapsed, we saw a two-week decline in gold prices, despite having a perfect storm for gold,” LBBW analyst Thorsten Proettel said………………………………………..Full Article: Source

Prices have plunged after years of overinvestment led to a supply glut at the same time that economic growth is slowing in China. The value that commodity producers have lost in the past year almost equals India’s entire economy.
Slumping prices for raw materials have wiped out $2.05 trillion from the shares of mining and oil companies since the middle of last year, data compiled by Bloomberg show. That compares with India’s $2.07 trillion gross domestic product………………………………………..Full Article: Source

Today is working up to be anything but the lazy, hazy summer day for trading you might expect. Let’s start with the nation that inspired “Borat.” Kazakhstan’s official currency, the tenge, took a sharp hit after the government moved it into free float. The Asian nation exports oil. Enough said.
And the slick stuff was getting crushed earlier, in the wake of gluttish inventory data. “The bias is lower. The only bulls left are bull ants. They are small,” Richard Hastings, strategist at Global Hunter Securities, said yesterday as oil sank 4%. Brace for a much bigger drop, say some analysts………………………………………..Full Article: Source

Shares in Glencore, the FTSE-100 miner and commodities trader, have slumped to a record low after tumbling prices for coal and metals linked to slowing Chinese demand hit first-half profits.
Glencore closed down just under 10% at 159p, far below its 2011 float price of 530p, as it revealed a slump in earnings. In the first six months of 2015, adjusted earnings before interest, tax and other items fell 29% from a year earlier to $4.6bn (£2.9bn) as the price of aluminium, nickel and other raw materials fell. The company’s net income excluding significant items dropped by 56% to $882m………………………………………..Full Article: Source

Miners were hit as copper priced edged back towards six-year lows, as renewed fears over China rattled fund managers. On the same day that copper prices dropped back towards six-year lows, weighing on the mining-heavy FTSE 100, a closely-watched survey of fund managers around the world showed investors have piled out of energy and commodities stocks amid renewed fears over China.
Two-thirds of the 202 investors polled by Bank of America Merrill Lynch earlier this month said a Chinese recession and an emerging markets debt crisis are the greatest risks to global markets………………………………………..Full Article: Source

U.S. stock indexes positioned for a mild Monday bounce but did little to shake Wall Street from its cautious posture. The nagging issue of a sky-high dollar’s drag on multinational companies’ earnings prospects and a broad commodities slump continue to weigh on stock sentiment, at least sort of.
These lingering issues could factor into trading this week and are likely on the Federal Reserve’s mind as it mulls flipping the switch to higher interest rates. The broader stock market’s resiliency in the face of headwinds raises a new dilemma, at least according to some observers. Valuations, especially those fed by share buybacks, are stretched. The big worry? Wall Street may be getting pretty comfy propped up by buybacks………………………………………..Full Article: Source

The bad news for commodities could be spreading. As gold, oil, copper and other commodities tumble to multiyear lows, one expert says the turmoil is far from over. In fact, he said the collapse could mean that a full-blown market correction is just around the corner.
“We’re looking at real weakness in the stock market here in the U.S.,” Andrew Hecht said Tuesday on CNBC’s “Futures Now.” “We’ve had a really good time in that market, and I think it’s overdue for a correction.” Hecht, author of “How to Make Money with Commodities,” said he’s watching three commodities markets in particular: copper, oil and lumber. Hecht said copper is especially signaling a global slowdown, most notably in China………………………………………..Full Article: Source

With gold, crude oil and other commodities falling, several S&P sectors have taken a big hit. But as the popular CRB commodity index drops to new four-month lows, traders say this is actually a good sign for the S&P 500.
“It’s more of a concentrated weakness,” Ari Wald, head of technical analysis at Oppenheimer, said Tuesday on CNBC’s “Trading Nation.” “We’d be staying away from these commodity-exposed stocks, but for the market as a whole, we don’t think it’s very bearish. We think the S&P 500 can continue to do well.”……………………………………….Full Article: Source