EMOTION MOVING MARKETS NOW: 3/100 EXTREME FEAR PREVIOUS CLOSE: 3/100 EXTREME FEAR ONE WEEK AGO: 14/100 EXTREME FEAR ONE MONTH AGO: 10/100 EXTREME FEAR ONE YEAR AGO: 34/100 FEAR Put and Call Options: EXTREME FEAR During the last five trading days, volume in put options has lagged volume in call options by 10.17% as investors make bullish bets in their portfolios. However, this is still among the highest levels of put buying seen during the last two years, indicating extreme fear on the part of investors. Market Volatility: EXTREME FEAR The CBOE Volatility Index (VIX) is at 36.02 and indicates that investors remain concerned about declines in the stock market. Stock Price Strength: EXTREME FEAR The number of stocks hitting 52-week lows is slightly greater than the number hitting highs and is at the lower end of its range, indicating extreme fear. PIVOT POINTS EURUSD | GBPUSD | USDJPY | USDCAD | AUDUSD | EURJPY | EURCHF | EURGBP| GBPJPY | NZDUSD | USDCHF | EURAUD | AUDJPY S&P 500 (ES) | NASDAQ 100 (NQ) | DOW 30 (YM) | RUSSELL 2000 (TF) | Euro (6E) |Pound (6B) EUROSTOXX 50 (FESX) | DAX 30 (FDAX) | BOBL (FGBM) | SCHATZ (FGBS) | BUND (FGBL) CRUDE OIL (CL) | GOLD (GC) MEME OF THE DAY – IT’S THE JERKS UNUSUAL ACTIVITY KING vol pop to highs SEP 14 CALL ACTIVITY @$.20 2000+ Contracts PFE NOV 38 CALLS block @$.24 on offer 19713 Contracts HZNP SEP 30 CALLS block @$1.45 on offer 3900 Contracts UNFI President and CEO Purchase 5,500 @$45.24 CMRX Director Purchase 1,000 @$47.38 More Unusual Activity… HEADLINES Turnaround Tuesday as China cuts rates PBOC cuts rates by 25 bps, RRR by 50 bps PBOC: Economy still facing downwards pressure China Premier Li: We have the ability to hit annual economic targets China Premier Li: No Basis For Continued CNY Depreciation Questions over Li Keqiang's future amid China market turmoil --FT US CBO improves deficit view, sub-2% PCE seen to mid-2017 Fed Discount Rate Mins: 5 Fed banks vote for discount rate hike, 6 vote to hold, 1 votes for cut US Consumer Confidence Index Aug: 101.5 (Est 93.4; Rev Prev 91.0) US New Home Sales Jul: 507k (Est 510k; Rev Prev 481k) US New Home Sales (MoM) Jul: 5.40% (est 5.80%; rev prev -7.70%) US FHFA House Price Index (MoM) Jun: 0.20% (Est 0.40%, prev 0.40%) US Richmond Index Aug: 0 (est 10; prev 13) ECB Constancio: ECB ready to act if inflation outlook changes materially ECB Constancio: European stocks are 'fairly valued' GOVERNMENTS/CENTRAL BANKS Fed Discount Rate Mins: Five Fed banks renew calls for discount rate hike Fed Discount Rate Mins: Minneapolis Fed again votes to cut discount rate by 25bps Fed Discount Rate Mins: Six banks voted to hold discount rate US CBO improves deficit view, sub-2% PCE seen to mid-2017 --MNI FED COMMENT: Summers, Dalio raise prospect of QE4 from the Fed --FT BoC Schembri: Canada macroprudential housing policy is working --BBG ECB Constancio: ECB ready to act if inflation outlook changes materially --Rtrs https://twitter.com/livesquawk/status/636148802727116800!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); ECB Constancio says European stocks are 'fairly valued' --FT ECB: E949.0m borrowed using overnight loan facility --Livesquawk ECB: E162.3bn deposited overnight --Livesquawk Ifo economist: China to be bigger factor for German business --Rtrs Japanese PM Advisor Hamada: BoJ should consider acting if yen rises sharply --WSJ Senior Japan ruling party member Toshihiro Nikai calls for fiscal spending amid stocks rout --ET Swiss parliament panel grills SNB's Jordan on negative rates impact --Rtrs CHINA China cuts RRR ratio by 50 bps to 18%, effective 6 Sept --BBG China cuts 1yr deposit rate and lending rate by 25 bps each --BBG PBOC Removes fixed deposit rate ceiling for more than 1yr --BBG PBOC: Economy still facing downwards pressure --BBG PBOC: Cuts will provide long term liquidity --BBG PBOC gauges MLF demand this week --BBG https://twitter.com/livesquawk/status/636130422477463552!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); China Premier Li: We have the ability to hit annual economic targets --MNI via ForexLive China Premier Li: No Basis For Continued CNY Depreciation --MNI via ForexLive Questions over Li Keqiang's future amid China market turmoil --FT Germany EcoMin Gabriel: German economy has no fear for Chinese turmoil -ForexLive France EcoMin Macron: China poses risks to global economic recovery --ForexLive FIXED INCOME US sells 2-year notes to tepid demand --Rtrs Fed RRP $73.2bn, 32 bidders (prev $73.8bn, 32 bidders) --Livesquawk Bund hit after China rate cut lessens need for safety --FT UK DMO to sell £3.75bn 1.5% 2021 gilt on 2/Sept --Livesquawk Eonia settles at -0.135% (prev -0.126%) --Livesquawk FX USD: Dollar recovers against euro, yen --MW EUR: French EconMin Macron: China developments to push up EUR, may 'handicap' policymakers --ForexLive EUR COMMENT: The Euro Emerges as Unlikely Safe Haven --BBG JPY: Japanese PM Advisor Hamada: BoJ should consider acting if yen rises sharply --WSJ GBP: Pound bounces back against the euro despite predictions that China crisis could delay UK rate rises --Daily Mail ENERGY/COMMODITIES CRUDE: WTI futures settle 2.8% higher at $39.31 per barrel --Livesquawk MARKETS: Commodity prices pushed higher after China cut --FT CRUDE: Oil rallies but still near six-and-a-half-year lows --Rtrs CRUDE: Iran's oil investments shrink on crude slump --BBG CRUDE COMMENT: Opec 'feels the heat' on oil, but will it cut? --CNBC CRUDE: BP restarts large crude distillation unit at Whiting --BP METALS: Trafigura to exit LME's metals storage business --FT METALS: EU antitrust regulators are probing precious-metals trading following a US investigation --BBG EQUITIES MARKETS: US stocks soar at open after market tumult --FT POLICY: ECB's Constancio says European stocks are 'fairly valued' --FT M&A: Nippon Life to pay Y300-Y400bn for Mitsui Life --Nikkei via BBG M&A: Monsanto ups bid for Syngenta --CNBC EARNINGS: Best Buy shares soar after earnings beat --CNBC O&G: BHP Billiton posts worst profit in 11 years, maintains dividend --SMH INDUSTRIALS: Boeing looks through turbulence with rosy China view --FT FX: GE will seek compensation for FX loan conversion in Poland --BI CRA: S&P: United Technologies Corp. Ratings Affirmed Following Announcement Of Sikorsky Sale And Share Buybacks EMERGING MARKETS CHINA: Shanghai Comp closed down 7.6% before (before PBOC cut rates) --BBC RUSSIA: Russia Cuts 2015 Outlook But Sees Growth In 2016 --MW