Bounce? A Quick Review Of (Crashing) Global Markets

Takeaway: Markets across the world remain in crash mode.

Bounce? A Quick Review Of (Crashing) Global Markets - bounce cartoon 02.12.2016

Talk of global equity market bounces is laughable. Here's a scorecard of global stock market performance in the past year highlighting the drawdown in major equity indexes from their respective 2015 highs.

Not good.

  1. MSCI World Index: -18.3%

  2. China's Shanghai Comp: -45.1%

  3. Spain's IBEX: -31.3%

  4. Japan's Nikkei: -23.1%

  5. Germany's DAX: -26.5%

  6. France's CAC 40: -22.2%

  7. U.S. Russell 2000: -24.4%

  8. U.S. S&P 500: -11.9%

Last week's "bounce" in U.S. equities was far from a vote of confidence. It came on no-volume.

Bounce? A Quick Review Of (Crashing) Global Markets - volume us

Below is a quick smattering of crashing global financial markets and their "bounces" for context...

Japan...

India...

Germany...

 

"1-day bounce (yesterday) does not an arrest of the stock market crash make," Hedgeye CEO Keith McCullough wrote in a note to subscribers this morning. "Draghi’s Euro is actually up vs. USD this morning as Italian stocks continue to crash and the DAX falls back to -26% since the 2015 peak – should he jawbone daily?" 

Oil... 

 

"Context is critical here – after another -4.7% week for WTI, they bounced it +3-4% on the OPEC headline this morning and have since lost most of that. The risk range remains intact at $26.02-31.39 (don’t chase bounces, sell them!)," McCullough wrote.