Asian Morning Briefing : U.S.Stocks End Lower After Volatile Session

 
                       LAST    CHANGE   % CHG 
DJIA                 17068.87  -111.97  -0.65% 
Nasdaq                4547.83   -57.32  -1.24% 
S&P 500               1972.74   -16.89  -0.85% 
Japan: Nikkei 225    16755.32  -344.08  -2.01% 
Hang Seng             22670.5  -357.35  -1.55% 
Shanghai Composite    3021.52     68.1   2.31% 
S&P BSE Sensex       26781.44  -538.12  -1.97% 
Australia: S&P/ASX     5152.3    -33.8  -0.65% 
UK: FTSE 100          6331.83   149.11   2.41% 
 
 
                    PRICE CHG  YIELD 
U.S. 2 Year              2/32  0.552 
U.S. 5 Year              9/32  1.512 
U.S. 10 Year            17/32  2.061 
Australia 10 Year        6/32  2.871 
China 10 Year           13/32   3.78 
India 10 Year           -8/32  7.987 
Japan 10 Year            7/32  0.357 
German 10 Year           9/32  0.599 
 
 
                          LAST(MID)  CHANGE 
Australia $ (AUD/USD)         0.822  0.0002 
Yen (USD/JPY)                116.41    0.01 
S. Korean Won (USD/KRW)     1081.01  -16.76 
Chinese Yuan (USD/CNY)       6.1898  0.0001 
Euro (EUR/USD)               1.2511       0 
WSJ Dollar Index              81.87       0 
 
 
              LAST   CHANGE  % CHG 
Crude Oil      55.3   -0.61  -1.09% 
Brent Crude   59.77   -1.44  -2.35% 
Gold           1197   -10.7  -0.89% 
 

        MARKETS AT A GLANCE
        (Data as of approximately 5 p.m. ET)
        SNAPSHOT:
        U.S. stocks ended a volatile session Tuesday with broad declines. Investors flocked to safe-haven U.S. bonds and the yen amid fresh signs of faltering global growth and market turmoil in Russia. U.S. oil prices broke a four-session losing streak after posting big swings earlier in the session. Gold futures fell on fears of a hawkish Fed monetary policy statement and concerns about the Russian ruble's continued decline.
        OPENING CALL:
        On Wednesday, Japan will unveil its November provisional trade statistics. Economists are clearly looking at October's big jump in exports as an anomaly, foreseeing another widening in the deficit in November. If we do see another strong performance, however, it will boost the impression that the weaker yen is finally having an effect on exports.
        EQUITIES:
        U.S. stocks ended a seesaw session with broad declines, after spending much of the day swinging alongside crude-oil prices.
        Tuesday's session was volatile, as U.S. benchmarks were buffeted by moves in oil prices and developments in Russia for much of the session. Stocks turned lower shortly before the close. Traders said that much of the action was driven by fund managers shifting their positions ahead of the end of the year, prompting declines in technology stocks and other highfliers.
        "People are selling the winners and...buying the stocks that underperformed this year," said Christian O'Brien, an equity trader in the New York office of financial-services firm Raymond James.
        The Dow Jones Industrial Average fell 111.97 points, or 0.7%, to 17068.87. The blue-chip index traded within a wide range during the day, gaining as much as 247 points before noon, then closed at its session lows. The S&P 500 dropped 16.89 points, or 0.8%, to 1972.74.
        U.S. technology stocks led the declines, along with shares of companies with high forecasts for earnings growth, which are considered to be riskier bets. The Nasdaq Composite Index fell 57.32 points, or 1.2%, to 4547.83. The tech-heavy index is up 8.9% this year, outpacing the Dow's 3% gain. Large-cap growth stocks in the Russell 1000 Growth Index fell 1.1%, more than stocks seen as bargains, as the Russell 1000 Value Index slipped 0.6%.
        A global emerging-market selloff rattled Asia for a second day Tuesday, sending stocks tumbling and forcing central banks in the region to intervene to slow declines in their currencies.
        FOREX:
        The dollar slumped to a one-month low against the yen, as tumbling oil prices continued to fuel investors' concerns about global growth.
        The dollar fell 1.2% in late-afternoon trade to 116.35 yen, its lowest in a month. The euro gained 0.6% to $1.2512, the strongest since Nov. 27.
        Global oil prices fell for a fifth session in a row, with Brent crude futures ending at a more-than-five-year low of $59.86 a barrel. Some investors are worried that oil's drop signals a softening global economy, prompting them to shed their bets on a stronger dollar and buy haven assets such as the Japanese yen and U.S. Treasurys.
        "The concern is that the decline in oil prices will be more persistent, and that this will start to hurt economies and change central banks' behavior," said Sireen Harajli, foreign exchange strategist at Mizuho Bank. "So investors have headed into assets that are considered safer, like the yen and the Swiss franc, which is why we see [the dollar-yen pair] back around 116 yen."
        BONDS:
        U.S. government bond yields hit new lows amid fresh signs of faltering global growth and market turmoil in Russia.
        Skittish investors piled into relatively safe assets, like Treasurys, as the ripple effects of a prolonged rout in oil continued to shake out in financial markets. Weak manufacturing data out of China and Germany raised concerns about the health of the world economy, while a plunge in the ruble amplified worries that the panic in some oil-dependent countries could spread more broadly.
        The yield on the benchmark 10-year Treasury note, used to set interest rates on everything from mortgages to car loans and corporate bonds, fell to 2.07% from 2.117% on Monday. That marks the lowest close for the yield since May 2013. When bond yields fall, their prices rise.
        Tuesday's gains are the latest leg of a yearlong rally in developed-country government bonds that has confounded investors and other market watchers. The previous low for 2014 of 2.09% occurred on Oct. 15, when the yield briefly dipped below 2% during intraday trading. At the start of the year, the 10-year Treasury was yielding 3%.
        "There is fear about growth, fear about deflation, fear about crisis in Russia. People want safety...especially into year-end," said Justin Lederer, senior trader of interest rates at Cantor Fitzgerald in New York.
        COMMODITIES:
        U.S. oil prices broke a four-session losing streak after posting big swings earlier in the session, as traders wagered on shrinking supplies and jockeyed to detect a bottom in a market that has plunged nearly 50% since June.
        The benchmark U.S. oil price settled 2 cents higher at $55.93 a barrel on the New York Mercantile Exchange. Prices traded as low as $53.90 a barrel and as high as $57.15 a barrel in the session.
        Brent crude, a global price gauge, settled down 2% at $59.86 a barrel, its lowest settlement since May 19, 2009.
        Few traders believe the recent strength in the oil market suggests a sustained rebound. Oil prices have sunk in recent months on concerns that ample global supplies are outweighing tepid demand growth.
        "It's not surprising for there to be people trying to bottom-fish" after oil prices hit a succession of five-year lows, said Anthony Lerner, senior vice president of industrial commodities at brokerage R.J. O'Brien & Associates.
        Gold futures fell on fears of a hawkish monetary policy statement from the Federal Reserve and concerns about the Russian ruble's continued decline.
        TODAY'S HEADLINES:
        Threats Made to Theaters Planning to Show Sony Movie
        In the first threat of physical violence apparently related to the recent cyberattack on Sony Pictures, people claiming to be the hackers vowed in an online message that there would be attacks similar to those of Sept. 11, 2001, at movie theaters that show the studio's forthcoming comedy "The Interview."
        Apple Wins iPod Antitrust Trial
        A jury ruled in favor of Apple in a class-action lawsuit that accused the technology giant of violating antitrust laws by suppressing competition for its iPod music players.
        Ruble Hits New Low Despite Rate Rise
        The battered ruble plunged to a record low against the dollar, as investors grew convinced that the Russian central bank's surprise move overnight to jack up interest rates to 17% wouldn't be enough to alleviate the pressure on the currency.
        China Plans to Ban Local Government Debt From Securitized Products
        China plans to ban asset management companies from repackaging local government debt as so-called securitized products, taking another step to contain risk in loans and bonds owed by many of its struggling regional authorities.
        Honda in China Sets Recall Over Takata Air Bags
        Honda Motor's Chinese joint ventures will recall 569,769 vehicles on safety concerns over air bags, China's quality watchdog said.
        Sprint to Face Record Fine Over Unauthorized Customer Charges
        The Federal Communications Commission is preparing to fine Sprint a record $105 million over allegations the company charged consumers for unwanted text message alerts and other services.
        Repsol Confirms Deal to Buy Talisman
        Repsol said it has reached an agreement with the board of directors of Talisman Energy to acquire the Canadian oil company for $8.3 billion, in a deal that will almost double the Spanish company's oil output right away.
        Alstom, U.S. Near Deal on Record Bribery Fine
        U.S. prosecutors are close to a deal with Alstom that would require the engineering giant to pay close to $700 million to settle a foreign bribery probe, people familiar with the matter said.
        U.S. Housing Starts Fall 1.6% in November
        U.S. home building faltered in November, a reminder of the headwinds that persist even as the broader housing market has shown new signs of strength in the final stretch of the year.
        GE Sees 2015 Earnings Below Street Estimates
        General Electric said that its earnings next year would likely come in lower than Wall Street has expected, as the drop in oil prices weighs on earnings at its big oil and gas business.
        RECENT DJ DOMINANTS:
        Carlyle Puts ITS Technologies & Logistics on Auction Block
        (MORE TO FOLLOW) Dow Jones Newswires

        December 16, 2014 17:30 ET (22:30 GMT)

        Yield Seekers Prone to Russia's Disease -- Heard on the Street
        Hong Kong Pulls Into Second in IPOs
        Picking Through the Ruble with Banks -- Heard on the Street
        Western Banks Curtail Flow of Cash to Russian Entities
        TODAY'S CALENDAR
        (Times in GMT, followed by country and event)
        1700 AUS OECD Economic Survey of Australia launch
        2100 SKA Nov PPI
        2145 NZ Q3 International Investment Position
        2145 NZ Q3 Balance of Payments
        2330 AUS Oct Westpac-Melbourne Institute Indexes of Economic Activity
        2350 JPN Nov Provisional Trade Statistics for the Month
        0000 AUS Dec Vacancy Report
        0001 UK Nov Scottish Retail Sales Monitor
        0030 SIN Nov Merchandise Trade, incl non-oil domestic exports (NODX)
        0030 AUS Nov International Merchandise Imports
        0600 JPN Nov Revised Machine Tool Orders
        0700 THA Bank of Thailand Monetary Policy Committee meeting and decision
        0901 MAL Nov CPI
        0930 UK Nov UK monthly unemployment figures
        0930 UK Dec Bank of England MPC meeting minutes
        0930 UK Dec Agents' Summary of Business Conditions
        1000 EU Nov Harmonised CPI
        1000 EU Q3 Labour Cost Index
        1200 US 12/12 MBA Weekly Mortgage Applications Survey
        1330 US Nov Real Earnings
        1330 US Nov CPI
        1330 CAN Oct Wholesale trade
        1330 US Q3 International Transactions
        1445 UK Treasury Committee evidence session with George Osborne on his Autumn Statement
        1530 US 12/12 EIA Weekly Petroleum Status Report
        1900 US Federal Reserve economic projections
        1900 US U.S. interest rate decision, followed by Janet Yellen press briefing
        (END) Dow Jones Newswires

        December 16, 2014 17:30 ET (22:30 GMT)

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