TUESDAY 12/16/14; Oil Collapses; Brent Oil Under 60; Global PMI's; Russian Central Bank Loses Control; Ruble Collapses; Russia in Chaos; Global Contagion; FOMC Two-Day Meeting Begins; Housing Starts; US Stocks Selloff; DRI; Hanukkah

Contagion continues around the globe. Asian indexes are weak across the board following the weakness in the US and Europe. The NIKK is collapsing -2% dropping under 17K. The SSEC, HSI and KOSPI are each down -0.7% as the new trading day begins. The SPASX200 is down -0.3% as Australia is picking up the pieces after the terrorist attack in Sydney. Russia is temporarily stabilizing but the ongoing weakness cascades to Germany which in turn hurts Europe. The European weakness cascades to the US and now back to Asia looping around the world.

The China Flash PMI drops to 49.5 into contraction for the first time in seven months under the previous reading of 50. The world’s second largest economy is on the skids. In these perverted central banker-controlled markets, however, the SSEC bounces strongly since the weak number will force the PBOC to provide more easy money. Chinese banks rocket higher. Traders love bad news since the central bankers will print more money and goose the stock market higher just like in the States for the last six years. What a sick world the Keynesian dolts have created.

The Russian Ruble recovers to 60 after the Russian central bank 








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DRI bounces +2.4% in afterhours trading after beating on earnings (with an EPS loss) and raising guidance. APP catapults +9% after firing CEO Dov Charney.  SEAS will drown on news that the divvy is delayed. S faces a $105 million fine from the FCC for shady billing methods but the stock trades higher.

The Jewish holiday of Hanukkah begins at sundown. There are only seven shopping days remaining until Christmas. The mini drones are a popular holiday gift this season.

Anecdotal data at Russian shopping centers, banks and businesses show growing concern that is turning into panic. Russians have lost confidence in the ruble and are seeking euro’s and US dollars instead. One bank branch is closing for the evening and burned through its entire $100K US cash allotment for today. Repeat this scenario across 100’s of bank branches and the gravity of the problem becomes apparent. The world awaits news from the Russian central bank overnight.