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What Drove Equities Down?

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  • Description

    Closing Bell panel on the factors weighing on the markets and whether a Santa Claus rally is still ahead.

  • Duration 5:56
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Get right to the floor show C help all of this is impacting the markets with traders at the New York Stock Exchange CME group -- the nymex.

Ben Willis of the night at the nice see you tell me at this point is this all Europe is as a stronger dollar is it just sort of the disappointment that the markets have.

About any plan that was brought out last Friday.

Yes.

Well I it's it's all the above but you have to remember this market's come from about -- great run going back.

Until the about the 25 of last month.

So it's that we we had the market continued to build last week on the progress -- -- being shown by the European leaders that was a good thing this I think is just the market.

They -- at least the equity side of the market pulling back a little bit after the run that we've had it's not really terrible showing where we've we all we did break.

Last week's low -- on the technicals but I still think the Santa Claus rally is still yet to come and continue as we go on.

The concern is obviously what's going on in Europe to demand destruction so you're seeing that impact on on the commodity complex in particular cold.

And the coal stocks.

There of the worst performers I'd like to hear from mar and the other participants on the other exchanges about the commodities area.

Gold also suffering that continues to be rumors that -- central banks doing selling.

You also one other piece that most people may not realize we believe from our side that the loss of MF global is having a dramatic impact on liquidity provisions.

On exchanges because those people are still the ham -- at least.

From fully participating.

In the likes of the gold market the oil market and and the like incredibly for its own markets before -- made comments -- it so I think that's something we should point out I believe that is truly having effect.

But from our side we have no -- to really.

Justify the downturn wherein right now on the equity side.

Then you're talking about Shelley Ross -- the nymex he happens to be with us right now we've got a whole bunch of stories we need to talked about -- but first let's get to the commodity part that and said.

He'd like to hear from you about at the moment we do have oil in 97 dollar territory nowhere near the hundred dollar barrel oil that even.

You know you had a bunch of companies including Petrobras.

Just a day or two ago saying hundred dollar barrel oil right now doesn't look like it right.

I was I think was still stuck 95 to a hundred -- I think that's -- to be -- -- the -- the I don't see you wanna see my command and big movement out to be Nvidia.

Between EM -- stuff no no liquidity yeah.

And people that are -- Made money that -- -- between now and the -- media.

The dollar killed us today the stock market artists I don't know why wouldn't take -- 9750 we try to take it out.

Three or four times but I think that's -- due to lack of volume I think tomorrow.

We get a feel with the APIs are going to be.

If we take a 9750 right back on -- 95 otherwise that there will -- back up -- on Japan feels heavy.

You know take API of course is inventory numbers that come out on -- a Joey -- let's let's get to Ben's question about.

-- -- his belief that the fact that MF global has all of these customer accounts tied up is actually -- and clogging up some of the -- strange behavior and activity.

I took the bottom I've been checking combined since this happened and a couple days I notice of bonds really off one its old days we blip.

Back up to yield environment we used to have.

But overall is -- that if it doesn't Jessica effective is no liquidity right now and it's hard to decide that if it's just because the end media and people just get ready for the holiday or CMF global thing and I think it's MF global thing because I'm still one of them.

And I know if you can trade there's a lot of guys still on the sideline waiting to trade.

And I know it's it's just a horrible situation -- gets -- Chicago Mercantile Exchange at Peter Castro.

Looking at the behavior that we've seen of global markets today not to mention gold plummeting more than 47 dollars.

Troy ounce.

Again we don't have a solution that the markets like from Europe does it all come to one thing float a Euro bond or we're not gonna be happy.

Are there might be even more difficult than that because even if you do float the eurobond you're gonna have to come up with who's in charge of -- and -- the entire day experiment to the Euro is really coming under scrutiny now and it's amazing that we've gone so far so fast because if we remember back there was a period -- -- supermodels were asking for those contracts to be in your hero at a 200 dollars and remember that ushered them know that we said it was the higher of the Euro we should have been getting then.

And you know really turned out to be are amazingly accurate caught -- was the higher the Euro and it's been -- winding ever since.

All of the price section we're seeing -- -- -- gold oil.

Can all be explained.

If you price the entire world in euros and you see that the Euro is getting weaker -- you start to see what's happening because.

Bob you know is a big deal ended the -- -- think there were insulated it doesn't stay -- or hedged.

Yeah I'd like to remind you had they never did pay off the -- in default -- Robert credit default swaps are you don't know if you're hedged are not.

And -- anybody was there -- risk on the balance sheet has.

Enormous risk that they can quantify so.

You know you talk about why people are us I mean -- -- of part of the year yet MF -- -- is very real very serious and and very sad for a lot of stock here.

But that kind of behavior where you don't know -- governments are gonna can make a statement or make a move our leader Jack her dude are who rule change.

I think that's crippling these markets allow more than any liquidity issue out of them -- I think they'll politics and the politicians are so heavy handed here.

They were just all be very very careful.

Well before we go we'll put our three guys up on the screen if that's possible and just give me a thumbs up or thumbs down does the eurozone with its seventeen nations as it stands today survive what's going on -- -- -- comes down guys.

Wow.

It all three.

There you go all right listen thank you so much I hate to say to -- It really looks like it's going to be a tough strategy here and speaking of strategy thank you gentlemen for joining us on the floor show.

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