Were going to bring you the asian market close. Top headlines from pages around the world. Whats happening now and what to expect. The bottom line, were here to get you up to speed and fast and boy do we have a set upto tell but today. Absolutely right. Lets get straight down to it starting with a major Global Market selloff this morning. Chinese stocks plunging dropping so much that trading was halted. The shanghai composite down nearly 7 as we look at things. Shenzhen composite down. Weak manufacturing data showing china contracted for a fifth straight month in december. The rest of asia showing lots of red numbers as well. The nikkei opening with its biggest one day slide in three months. Check also the dollar yuan. China is setting its currency weaker. Its at the weakest level for years. Thats a big uhoh for markets around the world. It reflects that chinas market is slowing. The weak manufacturing report that you told us about. Obviously we have seen that when china devalues its currency it matters to the rest of the world. That slide in chinese stocks down 7 , Circuit Breakers were put in place to start today and they actually had to use it that day halting trading. As you say, its more on the yuan moves than the pmis. Its passed 6. 5, the First Time Since 2011. It reminds investors of the transitions that still have to take place before people can think that everything is moving in a free market sense. So further devaluation today. Just one further point, 5 devaluation last year against the u. S. Dollar. On a trade weighted basis the yuan slightly slower. Its going to be a big question obviously going into 2016. The chinese economy, its currency. We also want to show you whats going on with oil prices. Huge story overnight. They spiked early before retreating within the last hour. Actually, are lower right now. Only to rise again. This has been crazy to watch. So wti crude in the overnight session did get as high as 38 per barrel above that level. Were below that now, obviously higher. Obviously the big driver is deteriorating relations between saudi arabia and iran. Cutting diplomatic ties after the embassy in tehran was stormed by protesters. That attack coming after riyadh executed 47 people convicted of terrorism charges including a prominent shia cleric. Theyve given them 48 hours to leave the kingdom. This is highlighting an extraordinary story that weve seen in the last 18 months. Geo politics has not managed to Push Oil Prices higher. In 2014 it was russia and ukraine. Last year lots of middle east issues. We still saw oil prices decline. Overnight weve gotten weak again even though now its saudi and iran. I was going to say saudi arabia has been relatively calm throughout the geopolitical turmoil in the middle east. Now that thats changing that could be a factor. It is the top opec oil producer. We have a great chart which shows all the worlds major producers. Iran is pretty high up there as well. Weell have to see if that escalates. Now to u. S. Stocks, actually futures under pressure to start the year. Red arrows today would follow a rough end to 2015 of course. Heres the final report card. The dow broke the sixyear winning streak. The s p turned in the worst yearly performance since 2008. The dow transports fell a whopping 18 . Here weve got the opening cause for today. The report card there. Were expecting about 1, 1. 5 declines for the three major u. S. Indices there. That follows declines across the globe. Yeah. Its pretty ugly out there. You can see the earlier european action. Red across the screens there. The ftse in london is coming off the worst performance dropping for the second year. It was beat by all the main rivals including u. S. , france, germany, japan and china. What were seeing to kick off the year is more selling in force. The german dax now down 3. 5 . The euro stronger this morning. Thats factoring in. Overall pretty negative mood on oil and of course on china overnight. The dax the lowest of european trade today i think partly because it was closed a day earlier. The thursday, new years eve. Across the world and germany didnt take part in those. Now what will today and this year bring for investors . Lets check out the socalled january effect. The theory here is that stocks have dropped in december for year end tax selling reasons rallied back as investors buy them at cheaper prices. Meantime, the Stock Traders almanac say the direction of trading in january predicts the course for the year 75 of the time. Have to see if that holds. As for broader markets, check out the yield on the ten year. 2. 22 this morning. A little bit of buying. A little bit of safe haven seeking. Were down from close to 2. 3 level that we finished the year. The twoyear treasury note yield is above 1 . We havent seen this in about 5 years, the twoyear yield best known for being influenced by the fed rate hikes. 1. 028 . Buying the safe haven japanese yen is very much in vogue on this risk selloff overnight. Whats interesting is to see the euro stronger. So far stock markets dont like that trade. The euro moving closer to 110. Havent seen that in a couple of weeks. Dollar yen is a key mover. Strong and unusual buying of the japanese yen. And the british pound remains higher. Interestingly, gold is catching a bit on the socalled risk aversion piling into the safe haven trades. Gold up 1 . Up almost 13 bucks. Coming off its third annual decline on the back of what has been a pretty strong dollar period over the past few years. Interesting those points you make about the euro and en. Clearly today is risk off day. Interesting dynamic, strong euro, stocks dont like it. No, indeed. Strong yen as well. Of course, the nikkei was down by some 3 . Developing story out of india this morning. At least eight people dead 50rks injured after an earthquake hit the country. The powerful 6. 7 magnitude quake struck while many residents were asleep. Some buildings collapsed. The casual at this toll is expected to rise. In corporate news, new york is revising its lawsuit against draft kings and fan duel. Arguing that they should return all the money that they made in the state. Landon dowdy joins us with more on that story. Good morning, landon. Good morning, sarah. The two sides may be fighting for their lives to stay in business in new york stay. New York Attorney general Eric Schneiderman amended his previous suit. Hes asking fan duel and draft kings to give back to those and pay up to 5,000 per case. Restitution wasnt part of the original case. They took in 200 million of entry fees. Fan duel has 600,000 kings. Hes focusing more on the deceptive adds. Draft kings offers a 600 bonus but that only kicks in when they spend at least 15,000. Landon, thats an interesting development. Whats the next legal step from here . Well, if the two sides are set to duke it out today in an Appellate Court to see if they can continue operating in new york state. Wilford, a big welcome to you on cnbc hq. Great to be here. Couldnt ask for a better day with all of the global stock Market Action. Tesla meeting its lowered Fourth Quarter guidance for deliveries handing over more than 17,000 vehicles during the final three months of the year. Hyundai and kia see their vehicle sales rising 1. 5 this year. That is short of industry estimates. The two automakers missing their 2013 target for the First Time Since the 2008. Phil lebeau will be joining us with more. Yes, we managed to wake him up early in the next half hour. Fidelity is dropping credit Card PartnersAmerican Express and bank of america ending a 12 year relationship there. Fidelity will team up with u. S. Bancorp and visa. Amex lost its deal with costco. Microsoft is changing policy and says it will now tell email customers when the company suspects there has been a government hacking attempt. The change comes after four microsoft employees reported the tech giant failed to warm victims of a chinese attack on hot mail accounts several years ago. Airbus is selling three a 380 jumbo jets. The faa is reporting fixes to boeing 767 slides. Right, its time to slip in a quick break. When we return, your kensho trade of the day. Well head overseas to london and check in on how european markets are doing in trading. Quick check on the map shows us we are declining by 2 to 3 . Stay tuned, youre watching cnbc, first in business worldwide. While youre watching this, im hacking your company. Grabbing your data. Stealing your customers secrets. Theres an army of us. Relentlessly unpicking your patchwork of security. Think youll spot us . You havent so far. The next wave of the internet requires the next wave of security. Were ready. Are you . Thats why i switched from uverse to xfinity. Now i can download my dvr recordings and take them anywhere. Ready or not, here i come whispers now hideandseek time can also be catchuponmyshows time. Here i come cant find you anywhere dont settle for uverse. X1 from xfinity will change the way you experience tv. Welcome back to Worldwide Exchange. If youre just waking up, hold on to your hats. Coming off the worst year for u. S. Stocks since 2008, u. S. Equities futures pointing to a sharply lower start. Dow futures down more than 250 points. S p futures down 30. Nasdaq futures down 72. A lot of worry out there about what happened in china overnight. Of course, the tensions rising in the middle east. Youve got to be watching oil. Sharply higher overnight. Gave back the gains. On the move higher. Brent crude oil, the international benchmark, were seeing the biggest move up more than 1 . Wti crude was up at 38 a barrel. Now back in the 37 range. The volatility in crude coming from deteriorating relations between Top Oil Producers saudi arabia and iran. Cutting diplomatic ties with iran yesterday after the embassy in tehran was stormed by protesters. Wilford . Lets get back to equity markets, sarah. Chinese stocks getting slammed overnight and european markets opening to a sea of red. Cnbcs Global Market team has it covered. Lets begin with sri in sipping ga poor. Sri. Wilford, lovely to see you, sir. What a mess. What a deeply inauspicious start in asia in 2016. Lets start with the china markets. That was by far the biggest story of the day. That was the first time china has halted trade in the trades. The reality related to the Circuit Breakers is that it is supposed to contain volatility so ultimately, yes, it is early days. The first days of implementation, but ultimately it was selfdefeating. Let me just talk you about what happened. The softer china pmi seemed to be the capitalist. Csi was down by about 5 at quarter past 1 singapore time. That was the first threshold that we crossed that triggered the Circuit Breakers. Trade resumed 15 minutes later. Soon after that we saw the selling snowball. Down by 7 . Bang, the next trigger for the Circuit Breakers. That effectively froze trade for the rest of the session. So id say there was an element, as i said, of shouting fire in a crowded movie theater. Investors essentially did panic, they tried to rush for the exits and sell to try to preempt the circuit breaker. Thats how this meltdown really snow bald. What we can say is the volatility seems to be back and in earn yes. We get the trade balance for the month of december at the end of the week on friday. Let me pass the baton over now to my colleague carolyn in london for the Market Update over in europe. Hi, carolin. Hey, good morning to you, sri. A pretty ugly start to 2016 as well here. We took the cues from the asian trading session. The main culprit once again concerns about china and those due to political risks in the middle east. The stoxx europe is down at this time. If we take a look at the indices one by one, well see that the dax in germany is being hit the hardest. Off by 3 1 3. 10,382 points. Keep in mind that the dax has rallied. The ftse 100 continuing last years weakness. Down 5 last year and this morning. Were seeing another drop of 2 . Many of the commodity plays doing very poorly as well. Now in stock specific news, guys, theres one stock that has seen plenty of buzz. Ferrari completed its spinoff from fiat chrysler. Started trading in milan today. I want to show you what the shares are doing. 43. 20 versus the issue price of 43. This comes after fiat sold 10 of ferrari in a highly anticipated sale. The free flow is 67 . Back over to you guys. Great stuff, carolin. To you and sri, thank you very much. Your friends miss you over there but were glad to have you. It is time for the trade of the day. When the last week in december has been negative, what do stocks usually do during the first week in january . It turns out since 1990 equities do rebound from that. The average return from the nasdaq 101. 5 . Nasdaq 100. 1. 5 . The s p 500 turning in an average of 1 each although judging by todays early Market Action it looks like we may break that trend. Theres a lot of negativity out there. Theres a lot of negativity out there. Thats that looking at the final week of the year. A lot of people with u. S. Equities looking at europe as a whole saying it was flat down for most of the indices. I want to throw in one extra factor in q4 all of the major u. S. Indices were up. You keep mentioning that. Depending which time frame, were due about a year, were due about a year. Are we due about a quarter. Flat markets, last time that happened, 2011. The following year you saw double digit gain though we are in the new territory. End of zero percent interest rate. The futures were called down by 1. 5 . Thats less than weve seen in european and asian trade. Japan, china, france, germany, all of those guys were up around 10 last year and the u. S. Wasnt. Again, reason why the declines in the u. S. China giving almost all of it back dropping 7 . Obviously a wild day shaping up in the Global Markets this morning. Stay tuned, weve got you covered. Plus, this mornings business travelers forecast. Highlights from a wild weekend in the world of sports and the political agenda ahead as washington returns from a holiday recess. As we head out to break, check out the dollar. Interesting action, buying of the japanese yen, buying of gold, selling of the dollar against the euro. Youve got a Global Market selloff. China in the eye of the storm. Stocks there getting obliterated overnight. Stay tuned, youre watching cnbc, first in business worldwide. Good morning and welcome back to Worldwide Exchange. Oil is up 1 . It was up 3 overnight. It gave up the losses to be in negative territory now settling up 1 . So the general global risk sentiment, negative risk sentiment being outweighed by the geopolitical concerns in saudi arabia, meaning oil has caught a bit. All three major indices for the u. S. Equities expected to open down by 1, 1. 5 . That follows declines of 2 to 3 in europe and much more than that in asia. Nikkei off 3 and shanghai down 7 almost. Now that global risk sentiment of negativity manifesting itself in the currency market strangely with a bit of u. S. Dollar selling. Its not acting as a safe haven today. The yen is moving 1. 1 . Euro catching a bit. At 109. 21. A 0. 6 move there. Dollar yen about to break the 119. Now for todays business travelers forecast. Brian james joins us from kxas in dallas fort worth. Good morning, brian. Good morning. Starting off on a much colder note throughout the united states. Lake effect snow bands. The main storm system is off to the east. There is another one coming on shore back towards the west. Back towards the west well see some of that rain and snow develop across the central part of the u. S. Cooling down certainly. High pressure in control. The weather will stay pretty quiet for most of the day today. Like i said, the cooler air finally filtering in. It finally feels more like winter. Look at some of the high temperatures. Teens around marquette, toronto, 12. New york city just above freezing for today. Down here around dfw mid 50s. Back towards the west, low 60s around los angeles. Overall starting to look a little bit more like winter. Big chunk of cold air makes its way not northern central part of the u. S. Back to you. Brian, thank you very much for that. Right. In Washington News today, president obama is expected to map out a strategy to increase gun control. Hell meet with attorney general Loretta Lynch this afternoon. Nbcs Edward Lawrence joins us from washington with that story. Edward. Reporter good morning, wilford. President obama outlined gun control as the most important issue to tackle this year. Hes expected to bypass congress in order to make it happen. President obama fresh off his hawaiian vacation and taking aim at gun control. He meets with attorney general Loretta Lynch to talk about ways to increase background checks for people who buy guns. The president during his weekly radio address defended his position. A policy that is supported by some 90 of the american people. It was supported by a majority of nra households, but the gun lobby mobilized against it and the senate blocked it. Reporter democratic frontrunner for president applauds the move to use executive orders to increase background checks for gun buyers. Republican candidates disagree. Now this president wants to act as if hes a king, as if hes a dictator. Fact is, go to congress and convince the congress that theyre necessary. So hes going to sign another executive order having to do with the second amendment, having to do with guns. I will veto that. I will unsign that so fast. His first impulse always is to take rights away from law abiding citizens and its wrong. Reporter still, this is at the top of the president s agenda for his final year in office. President obama is expected to conduct a threemonth review of other items, other ways he can stop gun violence in the united states. Reporting live in washington. Back to you. Edward, quick question for you. The white house clearly has an uphill challenge when it comes to dealing with the developing story out of saudi arabia and iran. Saudi arabia, a key u. S. Ally. Iran trying to finish the nuclear deal there. How does president obama walk the line . Reporter at the moment the white house is asking for diplomacy. The white house and the u. S. Government want the tw