We look at how some key markets have fared since December 31, 2015 and how they fared overnight

Since the start of 2016, most markets have been in turmoil.

Yesterday we reported that the ‘bears are in charge‘.

Some see this as the start of GFC2.

Sentiment, even when disconnected from the recent ‘data’ is a powerful driver of markets. It is supposed to reflect group thinking about what will happen in the near, plannable future.

But, like many individuals, markets often get things wrong, or way ahead of themselves. Corrections happen.

But there is no way to know which is which until after the fact.

This update is a way to show what has happened so far in many markets this year, and what happened overnight.

Market Index 31-Dec-15 12-Feb-16 % change   % change
overnight
             
Auckland, New Zealand NZX50 6,324 5,934 -6.2%   -0.9%
Sydney, Australia AllOrds 5,345 4,817 -9.9%   -1.1%
Singapore FSSTI 2,883 2,540 -11.9%   +1.7%
Hong Kong HangSeng 21,914 18,320 -16.4%   -1.2%
Shanghai, China SSE Comp 3,539 2,763 -21.9%   -0.6%*
Tokyo, Japan N225 19,034 14,953 -21.4%   -4.8%
Frankfurt, Germany DAX 10,743 8,968 -16.5%   +2.5%
London, England FTSE100 6,242 4,970 -20.4%   +3.1%
New York, USA S&P500 2,044 1,865 -8.8%   +2.0%
             
Gold US$/oz 1,074 1,238 +15.3%   -0.8%
Oil WTI-US$/bbl 37.04 29.03 -21.6%   +10.8%
U91 discounted pump price NZ$/l $1.765 $1.575 -10.8%   n.a.
WMP NZ$/tonne 3,182 3,251 +2.2%   n.a.
             
UST 10yr yield   2.27% 1.73% -23.8%   +6.1%
NZ 2yr swap   2.86% 2.54% -11.5%   -0.3%
Aust. IG CDS iTraxx 126.53 166.65 +31.7%   +4.6%
             
* Closed for Chinese holidays – This is for Feb 5        

New Zealand swap rates for terms 4 to 10 years reached record lows at the end of trading on Friday. Record lows are approaching for the shorter terms as well.