Wake Up Wall Street (SPY) (QQQ): Seat buckles fastened, tray tables in their upright position
Here is what you need to know on Monday, September 20:
Strap yourselves in and hold on tight as we are in for a white knuckle ride. Markets have finally cottoned on to the potential mess that is Evergrande. You heard it here, not first, but we have been on this one for a while. Asian markets tanked overnight, and Europe, never one to miss out on some pessimism, took the baton and hammered stocks further. It is a broad slide with growth and reopening stocks in particular getting hit hard. Watch meme names from the open as the high delta usually means some serious pain for the sector. We can see the new meme favourite IRNT down 7% in the premarket already.
The Evergrande situation may of course be dramatically overshadowed by the debt crisis in the US as a possible default looms over politicians' failure to raise the debt ceiling. Anything China can do, we can do better, or worse as the case may be. We cannot see politicians being that stupid, can we? The ramifications of a US default would be truly catastrophic for markets.
The currency markets remain aloof from the turmoil with the dollar barely changed at $1.1715 versus the euro. Gold is getting some safe-haven interest, up to $1,760 now, while Bitcoin is sliding to $43,400. Oil will naturally slide on global growth fears and is down 2% to $70.35. The VIX (remember that?) is now up at 26, the highest level since May.
European markets are cratering just like the volcano in the Spanish Islands: Dax -3%, FTSE -2% and EuroStoxx -2.5%.
US futures are also tanking: Dow -2%, S&P -2% and Nasdaq -1.8%.
Wall Street (SPY) (QQQ) top news
ECB's Schnabel says he is pleased inflation is rising-ok then!
US travel ban news conference due at 10:00 EST / 15:00 UK, according to sources.
Yellen asks for Congress to sort out the debt ceiling or risk US default-WSJ.
Pfizer (PFE) BioNTech (BNTX): Pfizer says the covid vaccine is safe for kids of 5 to 11.
Smile Direct (SDC) up 4% premarket. Who knows why? Who cares, something is green!
AstraZeneca (AZN) up 1% premarket on positive trial data for breast cancer drug.
Crypto stocks lower, COIN, MARA, RIOT, MSTR as Bitcoin falls.
Oil stocks lower as oil drops 2%. CVX, COP, BP, etc.
Upgrades, downgrades and premarket movers
Source: Benzinga Pro
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
