Good morning! Here’s everything you need to know in markets on Monday.
AirAsia Flight Vanishes. Early Sunday, AirAsia flight QZ8501 from Indonesia to Singapore lost contact with air traffic control. The Airbus 320-200 had 155 passengers on board. The flight is thought to have crashed near the Indonesian island of Belitung, an official from Indonesia’s National Search and Rescue Agency told local news outlets. The search is ongoing. AirAsia shares closed down 8.5% in Malaysia after being down by as much as 12.9%.
Greece’s Fails To Elect President. Greek politicians failed to approve presidential candidate Stavros Dimas after its third attempt at voting. This failure has triggered snap elections, which are scheduled for Jan. 25. With the far-left Syriza group likely to win those elections, the country’s bailout programs are at increased risk of unravelling.
Greece Crashes. Greece’s Athens Stock Exchange General Index is down by over 8% Monday. At its lowest point, it was down by 11.3%.
Markets Are Mixed. Many world markets are coming back online after being closed for the Christmas holiday. In Europe, Britain’s FTSE 100 is up 0.2%, Germany’s DAX is down 0.7%, and France’s CAC 40 is down 0.3%. Japan’s Nikkei closed down 0.50% Monday, while Hong Kong’s Hang Seng rallied 1.8%. US futures are in the red, with Dow futures down 45 points and S&P futures down 5 points.
The Dallas Fed’s Manufacturing Index Is Coming. Economists estimate this regional manufacturing index slipped to 9.0 in December from 10.5 in November. The confirmed figure will be out at 7:30 a.m. ET.
Germany’s Central Bank Chief Is Pushing Back Against More Easing. In an interview with a German Sunday newspaper, Bundesbank boss Jens Weidmann expressed irritation at pressure to start a quantitative easing (QE) program and said Europe’s growth was not as bad as some people believed. The ECB is expected to start a QE program early this year.
Sony Made $US15 Million In Online Sales Of “The Interview” In Its Opening Weekend. Sony announced Sunday night that “The Interview” was downloaded or rented online more than 2 million times, generating over $US15 million in sales. Sony had initially pulled the film from general release after the company was hacked.
American Apparel Is Being Pushed Toward A Buyout. “The board of American Apparel Inc has received a letter from British buyout firm Lion Capital, pushing it to explore strategic options include a sale, a source familiar with the situation said on Sunday,” Reuters’ Jeffrey Dastin reported. “The letter also said that Lion Capital would nominate Lyndon Lea, one of its founders, to the clothing retailer’s board of directors to replace one of its previous designees, Gene Montesano. Lion Capital, a former lender to the retailer, has the right to nominate two of American Apparel’s nine board seats.”
Foreign Investors Are Losing Faith With Abenomics. According to Bloomberg, foreign investment inflows into Japanese stocks dropped by 94% in 2014 in comparison with 2013. April 2013 alone registered three times more investment than the whole of 2014.
But International Investors Are Flooding Toward US Equities. International investment in US exchange-traded funds was the strongest in six years in 2014, according to the Financial Times. In comparison, flows into European funds were far weaker than in 2012 and 2013.