Critical information ahead of the U.S. market’s open
by Barbara Kollmeyer
There is a distinct aroma of risk aversion in the air this morning.
Oil is doing its best to keep its head above $40 a barrel, but no one is resting easy after that visit to bear country on Monday. Equities are faring even worse, from Europe to stock futures.
Plus, there’s a pile-in going on at the yen after the Japanese government cracked the lid on a huge fiscal stimulus plan, though only a quarter of it will be actual new, direct spending.
It’s August, and that has often boded ill for this market. The month itself has delivered a 0.65% drop for the S&P 500 over the last 10 years on average, according to LPL Financial. And Tom Lee at Fundstrat Global Advisors predicted last month that this would be another losing August, noting that out of six recent Augusts, four have dumped losses on investors.