Wednesdag August 26th

26-08-2015

Dow futures spike more then 400 points

U.S. stock index futures pointed to a sharply higher open on Wednesday after a highly-volatile session for China's Shanghai Composite, with investors left largely unimpressed by the stimulus measures from the People's Bank of China. Investors are finding it difficult to know which direction to turn, with global indices flipping wildly between gains and losses after brutal selling seen at the start of the week. China's benchmark Shanghai Composite finished down 1.3 percent after fluctuating throughout the day. Futures extended gains, with the Dow indicating a higher open, rising more than 250 points and implying a plus-300 point open after China's central bank said on Wednesday it had injected 140 billion yuan ($21.8 billion) into the interbank money market via short-term liquidity operations (SLOs). The Peoples' Bank of China fired a double-barrelled easing shot on Tuesday — lowering interest rates and the reserve requirement ratio (RRR) by 25 basis points and 50 basis points respectively - but this was not enough to reassure markets of slowing growth fears. Investor confidence has waned amid these continued concerns about the world's second largest economy. In the U.S, stocks surged in a "head fake" rally Tuesday, sending the Dow 441 points higher, before gains were wiped out and the market traded sharply lower into the close. In the last week-and-a-half, the S&P 500 has lost nearly $2 trillion in market capitalization, with $900 billion lost in this week's two trading sessions alone. Wednesday's markets are expected to take their cue again from the action in China, but there will also be plenty of speculation about the Fed and when it might raise rates. New York Fed President William Dudley speaks to the press on the regional economy before taking questions at a 10 a.m. ET event. Dudley speaks ahead of the Jackson Hole Fed symposium at the end of the week, where Fed Vice Chair Stanley Fischer will address the group Saturday. European stock markets traded over 2 percent lower in early deals on Wednesday after a rebound yesterday, giving traders little respite from this week's big market swings. On the data front in the U.S., durable good orders for July rose 2.2 percent, above the expected 0.1 percent rise, but down from the 3.4 percent gain last month. China's highly-volatile Shanghai Composite index finished in negative turf late Wednesday, underperforming most of Asia's stock markets, as investor confidence remained frail despite fresh monetary stimulus. Nikkei jumps 3.2%. Japan's Nikkei 225 index scaled higher in late trading to break a six-session losing streak, helped by accelerated gains in mainland shares. Oil extended gains on Wednesday after China's central bank moved to support the country's economy, but prices stayed near 6½-year lows as a heavy supply glut kept the market outlook bearish. "Oil is catching its breath a bit and seeing if markets have been oversold or not," Capital Economics commodities economist Thomas Pugh said. Brent was up 37 cents at $43.58 a barrel by 8:33 a.m EDT (1233 GMT), and U.S. crude was up 48 cents at $39.79 a barrel. Gold slipped on Wednesday, tracking losses in other markets as concerns remained about China's economic slowdown even after it eased monetary policy. Spot gold fell 1 percent to $1,129.08 an ounce, on track for a third day of losses. The metal's fall on Tuesday was its steepest since July 20. U.S. gold for December delivery dropped 0.8 percent to $1,128.90 an ounce.