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China stunned markets today with a reported year-over-year decline of 18.1% in export data vs. the 7.5% increase expected. We’ve been seeing negative data from China over the past few months and bulls have for the most part shrugged it off. However, now that it’s the second largest global economy, you can ignore it at your peril for so long. Closely linked to China’s economic health has been the price level of copper (JJC), which has been in a decline recently and is now more in focus as the decline intensifies.
Weakness in China (FXI) carried over to Emerging Markets (EEM) and impacted other markets, but U.S. markets overall managed to cut much of the early losses to trade only modestly lower Monday.
Elsewhere, news from market heavyweights like McDonald's (MCD) stated another decline of 1.4% in sales, which was ascribed to, you guessed it, the weather. Steel manufacturer Cliffs Natural Resources (CLF) dropped nearly 5% on earnings while chemical company, FMC Corp (FMC), was up by nearly 5%. So marker performance Monday was scattered.
Leading markets higher included slight increases in Biotech (IBB), Healthcare (XLV), India (EPI), Vietnam (VNM), Israel (EIS), Agriculture (DBA) and Bonds (TLT), but few others.
Leading markets lower included: Homebuilders (ITB), China (FXI), Brazil (EWZ), Russia (RSX), South Korea (EWY), Mexico (EWW), Chile (ECH), Thailand (THD), Germany (EWG), Turkey (TUR), Solar (TAN), Coal (KOL), Oil (USO), Copper (JCC), Junior Gold Miners (GDXJ), Silver (SLV) and many more.
The top 20 market movers by percentage change in volume whether rising or falling is available daily.
Volume Monday was ultra-light making it easy for the invisible hand late day rally making things more respectable. Breadth per the WSJ was negative.
This was a disappointing and boring day Monday. And there isn’t much news on tap beyond the JOLTS Report and Wholesale Trade Tuesday.
Let’s see what happens.
Disclaimer: The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell only any security. Market sectors and related ETF's are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotation's aren't predictive of any future market action rather they only demonstrate the author's opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at www.etfdigest.com
|WTI Crude Futr||101.28||-1.30||-1.27 %||03:53|
|US Dollar||79.88||0.01||0.01 %||16:00|
|Brazil||1977.210||-1.58 %||-3.21 %||-10.86 %|
|Russia||630.425||-0.32 %||-8.65 %||-19.88 %|
|India||422.470||0.34 %||4.49 %||3.72 %|
|China||58.585||-2.00 %||-3.04 %||-7.16 %|