Good morning. Happy Monday. Hope you had a good weekend.
The Asian/Pacific markets closed mostly down. Indonesia dropped almost 4%. Australia, China, Hong Kong, South Korea and Taiwan dropped more than 2%; Malaysia, Japan, New Zealand and Singapore dropped more than 1%. Europe is currently mixed. Norway (down 1.3%) is the only 1% mover. Futures here in the States point towards a positive open for the cash market.
The dollar is down slightly. Oil and copper are down. Gold and silver are down.
China’s nonmanufacturing Purchasing Manager’s Index for May dropped from 56.1 to 55.2. There was hope the services sector could pick up some slack from the slowing manufacturing sector.
Portugal is injecting money into three of its biggest banks. This is news because we’ve heard a lot about Greece, Italy and Spain, but this is the first time in a long time we’ve seen Portugal (they’re the P in PIIGS) in the news.
The Japanese market hit a 28-year low.
Oil is at an 8-month low.
The market is broken on many levels. From a technical standpoint, the indexes are in downtrends and just Friday broke down from two weeks of consolidation. From a fundamental standpoint, economic numbers have gotten worse the last month, and the big number (the lastest employment report) stunned Wall St. From a psychological standpoint, fear is rising. Heck investors would rather buy bonds at 1.5% than invest in the stock market.www.leavittbrothers.com
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