Dow Dumps Over 300 Points From Thursday Highs After IEA Warns Oil Glut To Worsen

'As goes oil, so goes the US equity market' appears to bethe new mantra. Just as yesterday's pump-and-dump tracked oil, so in the pre-market, WTI Crude plunged back to fresh 7-year lows after IEA warned that the oil glut will worsen, with prices lower for longer as demand remains subdued through at least 2017. This in turn sent US equities tumbling with Dow futures down 200 points (down 330 from Thursday highs).

US Equity Futures Suddenly Fall Off A Cliff As Europe Slides, Oil Tumbles, EM Currencies Turmoil

It was a relatively calm overnight session in which European stocks wobbled modestly, Japan was up, China was down following its weakest fixing since 2011 as the PBOC continues to aggressively devalue since the SDR inclusion (stoking concerns capital outflows are once again surging), EM stocks stocks were weak and the dollar was unchanged ahead of today's retail sales data and next week's Fed meeting, and then suddenly everything snapped.

Year End Tax Loss Selling - Energy Stock Edition

The Energy names in the S&P 500 haven't broken their August lows in the recent downdraft for the group. That’s surprising for two reasons: first, spot crude prices certainly have – $36.52 today versus a $39.65 low on August 24th; and second, December is typically the month where investors harvest tax losses by selling losing positions and the Energy sector has a bumper crop of such candidates.

US Kills ISIS "Finance Minister" In Airstrike

This afternoon we got another completely amorphous claim from The Pentagon regarding the death of a “senior” ISIS commander when Special Presidential Envoy for the Global Coalition to Counter ISIL (whatever that is) Brett McGurk took to Twiiter to announce the death of an Islamic State FinMin.

ConocoPhillips Cuts Capex Amid Intractable Oil Rout

It's a bad time to be in the commodities business. Crude is in a veritable tailspin as an increasingly disjointed OPEC ramps production to three-year highs and thanks to a worldwide deflationary supply glut, the Bloomberg commodities index is sitting near its lowest levels of the 21st century portending doom and gloom for prices across the entire commodities complex. On Thursday, we get the latest round of desperate cost saving measures as oil major ConocoPhillips slashes capex by some 25% and looks to raise $2.3 billion from asset sales.

OPEC Production Hits Three-Year High As Oil Price Continues Slump

The latest confirmation that the oil cartel formerly known as OPEC is effectively non-existent, came a little over an hour ago when in its latest November monthly report, the Organization of Petroleum Exporting Countries reported that total monthly crude output for the member nations rose to 31.695 million barrels per day, the highest amount produced in three and a half years.

Frontrunning: December 10

  • Win or Lose, Trump Has Already Left His Mark on Republican Primary (BBG)
  • S&P 500 Futures Rise With Miners; Oil Erases Gains, Euro Drops (BBG)
  • U.S. top court divided over affirmative action in college admissions (Reuters)
  • San Bernardino Shooter Said to Have Planned an Attack in 2012 (WSJ)
  • Gun buyer and gunman linked through marriage, previous plot (AP)

After Vicious Rollercoaster Session, Global Stocks Flat, US Futures Stage Tepid Rebound In Illiquid Chaos

After yesterday's rollercoaster session in both the S&P and in oil, where initially stocks soared alongside oil, only to promptly tumble as stops were taken out and as the refiners' inventory strategy was exposed after the DOE's latest weekly numbers were released, it has been a quieter session so far, though maybe not for China where stocks jumped at the open only to fizzle and close at the lows in what appears to be ever less intervention by the market manipulating "National Team."

China Says Turkey Needs To Respect Iraq's Sovereignty, Territorial Integrity

With Turkey and Iraq still at odds over the former's deployment of between 150 and 300 troops along with two dozen tanks to Bashiqa, Russia told the Security Council on Tuesday that Ankara is acting "recklessly and inexplicably." Of course Moscow has a powerful friend among the five permanent members and on Wdnesday, Beijing weighed in on the Turkish troop issue for the first time.