(As of 7:15 am PST)
Markets are seesawing around
the unchanged line Tuesday, a day after the S&P500 tumbled 2.6% to reach
its lowest level since August 24. Global growth concerns sent a wave of selling
pressure throughout equity markets Monday with investors caught up in a sea of
red to start the week. Asian and European stocks took a beating yesterday, as
did US stocks and commodity prices. About the only thing that was up Monday,
was volatility, as investors grappled with further weakness in China as well as
the issues facing Catalonia’s quest for independence in Spain. Today, markets
seem indecisive in their direction (at least in the opening hour of trade).
Economic data is light today although a report on US home prices showed prices
rose 0.6% in July, in line with expectations. In other news, Goldman Sachs cut
its year-end forecast for the S&P500 to 2,000 from 2,100 citing weakness throughout
the global economy. Overseas, most Asian indexes finished lower with Japan’s
Nikkei notching a 4% decline on the day. European markets are also down for the
second consecutive day. Gold and oil prices are up slightly. It’s a tough call
on where the market heads from here. With earnings season winding down, there’s
not much good news to pull sentiment to the upside until October’s FOMC policy
meeting. Expect heightened volatility to stick around until then.
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