China Concerns Cloud Retailer Week

Good morning contrarians! It is Monday, August 15.

Some bad economic news out of China has weighed on risk sentiment overnight. The country’s central bank responded with a surprise rate cut. As of 0650:

• The damage is felt mostly in commodities, which makes sense seeing how China is the world’s biggest importer of these things. WTI crude is down almost 5% to trade below $88/barrel. Copper is down 3%;

• Stock futures in the U.S. are down a bit, with the S&P 500 pointing to a loss of 0.6% at the open. The Nasdaq is down a little less;

• Cryptos are dropping, with bitcoin off 2% to trade around $24,000;

• Bonds are flat, with the 2-year unchanged at 3.26% and the 10-year at 2.83%.