–Miners blasted: Mining stocks in Europe got hammered this morning. Glencore Plc, which raised capital at 125 pence a share on Wednesday last, traded as low as 107 pence, down 10 percent on the session. Anglo American Plc, Antofagasta Plc and ArcelorMittal all dropped more than 6 percent. Industrial metal prices fell, with zinc dropping to its lowest price since 2010 while coal prices in Europe have slumped to a record low. The moves come following the reduction in growth forecasts for China by the Asian Development Bank which said that countries’ declining appetite for raw materials would hurt commodity-focused export economies.
–Volkswagen fallout: Shares in Volkswagen AG are tumbling again in Frankfurt after the company said it plans to set aside €6.5 million ($7.3 billion) to cover the costs of addressing irregularities in its diesel engines which have been installed in 11 million cars worldwide. Shares in the automaker, which have dropped over 30 percent since Friday, traded at €110.10 at 11:00 a.m. London time.
–More Fed speakers: Federal Reserve Bank of Atlanta President Dennis Lockhart said he remains confident that the central bank will raise interest rates this year, calling the decision to hold at September’s meeting a «close call.» Lockhart’s comments brings to four the number of regional Fed presidents that have said they expect a hike in 2015 in the last few days. Chair Janet Yellen is due to deliver a speech on Thursday in Amherst, Massachusetts, which will give her another opportunity to communicate the central bank’s policy view.
–China not so slow: The Shanghai Composite Index closed 0.9 percent higher, adding to its longest winning streak in a month. Data from Baidu – China’s most-used search engine – Alibaba and China’s main bank-card network shows there are signs of stabilization in nation’s economy. This follows a report from a New York-based research group that says the China slowdown has been overblown.
–Xi visits U.S.: Chinese Premier Xi Jinping lands in Seattle later today, where he will tour Boeing’s largest manufacturing facility, with the aerospace company hoping that the visit will include the announcement of new plane orders. During his trip to the U.S. he will also visit the White House and address the United Nations for the first time. With economists, investors and politicians all looking for answers to their questions over the future direction of the world’s second biggest economy, these speeches will be closely monitored.
–Global market overview: U.S. stock futures are declining by about 1.5% and European markets are deep in the red in early trading. The key indexes in Germany and France are down by about 3%. Worries that the Volkswagen scandal could affect other carmakers hit auto stocks across the region, while oil and mining stocks were pulled lower by falling crude and metals prices. Copper traded 1.7% lower in London. Asian markets were calmer, with two key Chinese indexes each rising by nearly 1%.
–Oil slips: Crude oil futures are declining by just over 2% to trade around $46 per barrel. Prices for oil have been in an extended slump after trading above $100 a barrel last summer. Now a new report is warning that $1.5 trillion in new oil and gas projects are at risk if oil prices remain below $50.
–Earnings: A few companies are releasing quarterly earnings today, including AutoZone (AZO), CarMax (KMX), Carnival (CCL), General Mills (GIS) and Olive Garden owner Darden Restaurants (DRI). They’re all expected to report before the market opens.
–Monday market recap: The Dow Jones industrial average added 0.8% on Monday while the S&P 500 gained 0.5%. The Nasdaq was essentially unchanged.