European stocks are trading flat on Thursday and U.S. crude oil has slid another 1 percent after dropping 5.97 percent on Wednesday and 25 percent in 2016 amid a global glut with a surplus of sanction free Iranian oil soon being sold online in oil markets.
U.S. stock futures are set to open lower on Thursday with the S&P 500 erasing -17 or -90 percent.
On Wednesday weak economic data in the U.S. with CPI inflation and Housing Starts helped to drive U.S. shares lower as the yield on the 10 yr. Treasury fell below 2.00 percent and volatility spiked with the VIX surpassing a 4 month high.
The Bureau of Labor Statistics reported on Wednesday that the Consumer Price Index declined -0.1 percent in December, matching an estimate from briefing.com.
Core CPI, which strips away food and energy, rose 0.1 percent in December, its smallest increase since August.
During yesterday’s session, the S&P 500 crossed a technical breakdown below last week’s 52 week intraday low at 1857, and dropped below to its April 2014 low at 1814 before closing at 1859.
Bank Of Canada
On Wednesday the Bank of Canada maintained its benchmark at 0.5 percent which comes after the central bank cut its rate twice last year in an effort to stimulate the Canadian economy.
The Canadian loonie finished the day up 60.03 U.S.
The Bank of Canada forecasts Canada’s economy to grow by 1.5 percent in 2016 and 2.5 percent in 2017.
Economic calendar- Thursday
Later this morning, investors will digest weekly jobless claims in the U.S., Philadelphia Fed data, and Crude and Natural Gas Inventories (1/16).
Yesterday it was incorrectly posted on this site that crude inventories would be reported on Wednesday. I apologize for the error. My source was inaccurate and won’t continue to be a source for me any longer.