Crude oil has collapsed again to start the week with Brent and WTI both down about 4% at the time of writing. This round of selling was ignited by yesterday’s China trade data which showed a drop in imports which the street has read as a drop in China’s demand for resources, while softer than expected exports suggest that demand could stay low. The selloff in crude oil has hit north American energy stocks hard today with the group down 3.7% in the US and a massive 5.9% in Canada. Stock indices had already been looking vulnerable after US indices failed to really respond to the blowout nonfarm payrolls and the oil crash appears to have given traders an excuse to exit exhausted markets after a huge run up since mid-October. This S&P 500 is down 0.8% overall while the S&P/TSX in Canada is down 3.2% which has paid the price for its heavier weighting in energy along with materials and financials as both of those groups have fallen about 2.5% today. USD has slipped back a bit in a normal trading correction which has taken some of the pressure off gold, enabling it to bounce back toward the $1,200 level. JPY is also bouncing back despite a drop in Japanese GDP, indicating that the Yen may be totally washed out at the moment. Resource currencies are under pressure today as they continue to react negatively to the prospects of reduced China demand and lower commodity prices. NZD has taken the biggest hit along with AUD plus the oil-sensitive CAD, NOK and RUB. There’s no major news due from Asia Pacific countries and North America over the next 24 hours and only a few small items from Europe, so the implications of struggling economies on resource demand may continue to impact trading in commodities and stocks. Corporate News There has been no major corporate news after the US close today. Economic News Significant announcements released overnight include: Germany industrial production 0.8% vs street 0.9% Canada housing starts 195K vs street 192K China trade balance $54.4B vs street $43.9B China exports 4.7% vs street 8.0% China imports (6.7%) vs street 3.8% Upcoming significant announcements include: 11:30 am AEDT Australia business confidence previous 4 11:30 am AEDT Australia business conditions previous 13 12:00 am GMT UK same store sales street 0.6% 7:00 am GMT Germany trade balance street €18.9B 9:30 am GMT UK industrial production street 1.8% 9:30 am GMT UK manufacturing production street 3.2% 10:00 am GMT Greece consumer prices street (1.2%) Note that today’s technicals include our usual weekly updates