The price of wholesale gasoline sank 6.6 percent after the USA government said inventories of gas climbed by 10.6 million barrels last week, and the price of heating oil tumbled 3.6 percent. Fresh stimulus may have given a jolt to Chinese stocks but markets elsewhere slumped yesterday over jitters about the slowdown in the world's number two economy and rising geopolitical risk after North Korea's latest nuclear test. Traders and economists fear the yuan's depreciation may mean the world's second-biggest economy is even weaker than had been expected and that it could trigger another wave of competitive devaluations around Asia and in other key economies. COMMODITIES: The signs of weakness in China, a major consumer of energy, pummeled oil prices. Adding to geopolitical worries, North Korea claims it successfully tested its first hydrogen bomb, which follows a recent buildup of tension between Saudi Arabia and Iran. A USA analysis, however, indicated that the explosion wasn't caused by a hydrogen bomb, (http://www.wsj.com/articles/u-s-analysis-indicates-north-korea-test-wasnt-hydrogen-bomb-1452106850) The Wall Street Journal reported. The Dow Jones Industrial Average finished down 252.15 points, or 1.3%, at 16,906.51 - its first close below 17,000 since October. South Korea's KOSPI and the won both fell and Japan's Nikkei extended losses to close down 1 percent. The Nasdaq gave up 60 points, or 1.3 percent, to 4,830. ENERGY AND METALS: Energy stocks fell with those prices. All the 10 major SP 500 sectors were lower with the energy index's 2.54 per cent fall leading the decliners. China's blue chip shares bucked the global trend with the CSI300 index closing up 1.75% and the Shanghai Composite up 2.3%. Scott Wren, senior global equity strategist for the Wells Fargo Investment Institute, said China's transition to a service economy is not failing. Trader Gregory Rowe works on the floor of the New York Stock... "There's probably more apprehension about the path for equities over the course of 2016 than there has been in the past", said Michael Fredericks, portfolio manager of the $US12 billion BlackRock Multi-Asset Income Fund. Part of that is driven by higher stock-market valuations after several years of gains, and part of it is driven by concerns about growth, he said. The yield on the 10-year Treasury note fell to 2.17% from 2.24%. Despite a spate of US data, the minutes and remarks by Fed Vice Chairman Stanley Fischer, (http://www.marketwatch.com/story/feds-fischer-market-expectation-of-2-fed-hikes-this-year-is-too-low-2016-01-06) investors remained fixed on the global issues that have loomed large over the market so far this year. Investors are now searching for clues on when the U.S. central bank will make its next move, and how many interest-rate increases could happen this year. "They want the security of knowing that their money is safe". Auto retailer AutoNation said it had to offer large discounts in December, especially on luxury vehicles. The company said it would report smaller profits per vehicle in the fourth quarter. All of the S&P 500's 10 sectors finished in negative territory. The streaming video service announced at an electronics show in Las Vegas that it would debut in 130 countries Wednesday, with the notable exception of China. It slumped 6.9 percent on Monday and 0.3 percent on Tuesday. We make an effort to protect discussions from repeated comments — either by the same reader or different readers. The stock lost $22.36, or 5 percent, to $426.67. Apple fell 1.0 per cent following reports that it is scaling back production of its iPhones. CURRENCIES: The dollar slipped to 118.52 yen from 119.13 yen in the previous day's trading. The euro edged up to $1.0788 from $1.0744. Chipotle Mexican Grill dropped 5.0 per cent as it reported sharply lower sales following food-safety problems at restaurants. PopHerald.com http://popherald.com/2016/01/07/stocks-hit-2-month-lows-as-oil-dives-and-china-worries-flare.html

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