OVERNIGHT

We're less than two weeks into the new year and the Shanghai Composite after dropping 5.3% is now down 15% so far.p in the year. The Chinese fallout is proving to be anything but local as currencies, energy and stocks are feeling the pain.

Oil in the U.S. hit a 12 year low and stock after dropping early in the trading session Monday rallied to close slightly higher. After a holiday Monday Japan's Nikki 225 hit a three month low and is down 8% so far in the new year.

The WSJ reported: Elsewhere, the Australian S&P/ASX 200 XJO, -0.14%   fell 0.1%, South Korea’s KospiSEU, -0.21%   was flat and Hong Kong’s Hang Seng Index HSI, -0.65%   rose 0.2%. In Japan, where markets were closed for national holiday Monday, the Nikkei Stock Average NIK, -2.71%   tracked Monday’s regional losses, falling 2%. The Chinese yuan continued to stabilize Tuesday, though the central bank guided the currency slightly weaker. Earlier, Chinese authorities fixed the yuan at 6.5628 per U.S. dollar compared with 6.5626 Monday. China’s onshore yuan, which can trade 2% above or below the fix, last traded at 6.5733 per dollar, weaker than 6.5695 at Monday’s close. The currency reached a five-year low of 6.5956 last week.

Gold finished off 0.1% at $1,095.70 a troy ounce. Prices have bounced by more than 3% year to date as investors seek safety amid the China volatility. Like it or not Wall Street continues to note the Chinese situation as for now it represents the wildcard until the yuan stabilizes and investors get a better fix on  the volatility and what regulators there will do.

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