U.S. stock futures are easing lower while oil is clawing its way back above $30 a barrel despite new evidence that supply continues to outstrip demand.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Japan sinks
1. Japan sinks
A lack of liquidity, with Chinese markets closed all week, left shares in Japan exposed following Wall Street's sell-off on Monday, and Tokyo's Nikkei plummeted 5.4%. The yield on key Japanese government bonds sank into negative territory for the first time as investors piled into safe haven assets.
"The sharp sell-off probably qualifies as a near panic. Such serious market moves can hurt confidence," wrote Berenberg Chief Economist Holger Schmieding.
2. International markets overview
2. International markets overview
European markets are bouncing around in early trade. London's FTSE 100 is higher despite a sharp fall once again for mining shares. Germany's DAX is dipping lower after data showed German industrial production fell 1.2% in December, against expectations for a rise. It's another indication of sluggish growth in Europe's economic engine.
The big beasts in European indexes are dictating early trade. UBS (UBS) is down 4% and Credit Suisse (CS) is off by 3% in Zurich. Deutsche Bank (DB) started the day up 2.5%. It had to reassure investors late Monday that it had enough cash to pay interest on some debt this year after its shares plummeted more than 9%.
Italian banks fell more than 6% at the open and some were suspended limit down. Italian financial stocks continue to suffer from concerns about their stability despite recent reassuring comments from the European Central Bank and the Italian government.
3. Stock market movers
3. Stock market movers
Google is paying its new CEO Sundar Pichai $199 million in Alphabet (GOOG) shares on top of his salary. Shares of 21st Century Fox (FOX) were down more than 5% during extended trading after issuing an earnings update late Monday. Chesapeake Energy (CHK) got slammed Monday, down 33%, and is down another 17% premarket even as it assured the market it had no plans to file for bankruptcy.
4. Earnings, economics and recap
4. Earnings, economics and recap
Companies including CVS (CVS), Coca-Cola (SCDZX) and Wendy's (WEN) are reporting this morning. Viacom (VIA) will also report. Its executive chairman, media mogul Sumner Redstone, recently stepped down. After the markets close, investors will hear from a Star Wars-fueled Disney (DIS), Western Union (WU) and Panera Bread (PNRA). Wall Street will also be watching for the federal government's weekly crude inventories report at 10:30 am ET.
The Dow Jones industrial average shrunk 1.1%, while the S&P 500 lost 1.4% and the Nasdaq was down 1.8%.
