WEDNESDAY 12/10/14; China Inflation Data; OPEC Lowers Oil Demand; Oil Collapses; Greek Yield Curve Inverts; German Bund Record Low; COST; HOV; TOL; TITN; 10-Year Note Auction; US Stocks Collapse; NYA Drops Under 40-Week MA Signaling Cyclical Bear Market; RH

The dollar/yen drops from 119.76 to 119.48. Euro 1.237. Copper 2.90. Japanese manufacturers are less optimistic about business conditions. The NIKK drops -1.6% in early trading. Australian data reports weaker consumer sentiment. The SPASX is down -0.6% to begin the session. China inflation is lower than expected further verifying a slowing economy. The SSEC is down -0.8% and HSI loses -0.4%. The KOSPI is down -1.3% rounding out a weak start to Asian trading.

The global weakness cascaded around the globe yesterday with US stocks staging an afternoon recovery but Asia creates a sour mood again. US futures dip negative. S&P -2. Dow -15. Nasdaq -7. US Treasury yields are; 2-year 0.62%, 5-year 1.62%, 10-year 2.22% and 30-year 2.87%.

The Shanghai Index stages an intraday recovery just like US indexes yesterday. The SSEC finishes up +3%. Yesterday the SSEC was up +2% at the start to finish down -5% and today the SSEC begins down -1% and finishes up +3%. Talk increases concerning further triple R cuts by the PBOC due to the weak inflation data. Expectations are for a cut by year’s end but the triple R cut may not occur until the New Year. Either way, traders are sniffing out central bank stimulus which accounts for the recovery in the SSEC today.

The NIKK finishes down -2.3% since the dollar/yen pair drops to 119.09 (stronger yen). HSI +0.2%. SPASX200 -0.5%. KOSPI -1.3%.

European indexes are bouncing back from yesterday’s drubbing but not recovering all the losses. DAX +0.7%. CAC and IBEX +0.5%. The Greece Athens Index continues lower down -3.2% adding to the near -13% crash yesterday. Greek stocks have lost about one-sixth of their value in the last 24 hours.

The Greek 3-year yield is 8.53% running towards 9% creating an inverted yield curve with the 10-year yield at 8.22%. Inverted yield curves indicate that a nation is headed into recession or worse; a default. The German bund is 0.686% at new record lows. Gilt 1.90%. France 10-year yield 0.97%. Spain 10-year yield 1.88%. Portugal 2.93%. US Treasury yields are; 2-year 0.62%, 5-year 1.62%, 10-year 2.21%, 30-year 2.86%.

Euro 1.2393. Dollar/yen 119.12. Pound 1.5689. Aussie dollar 0.8321. US futures are flat. S&P -1. Dow -5. Nasdaq -5. Gold 1229. Silver 17.11. Copper 2.91.

The Russian Ruble is 54.31. The central bank intervened with







[Text is Redacted: Purchase December 2014-12 to Read the Complete Chronology]

WTSL collapses -24%. BURL drops -1% after announcing a secondary offering (dilution). Chip maker ALTR floats higher in AH trading. EBAY may cut 10% of its workforce about 3K workers as plans proceed to split off the PayPal unit.

At 8:45 PM EST, the dollar/yen is 118.31. Aussie dollar 0.8337. Euro 1.2453. Pound 1.5714. Asian indexes begin trading on Thursday morning with the NIKK up +0.7%, SSEC and HSI up marginally and the KOSPI down -0.8%. US futures are positive after today’s drubbing. S&P +4. Dow +30. Nadsaq +10. European futures point to a lower open.

WTIC oil 61.50. Brent oil 64.82. Gold 1228. Silver 17.13. Copper 2.90.