Market Brief – Friday 11/29/19

Following Wednesday’s market close, President Trump signed the Hong Kong bill which China immediately responded that they will retaliate. So far, China has not retaliated nor has there been a leak of what the retaliation might be.

South Korean Industrial Production fell -1.7% in October and -2.5% from a year ago. South Korean Retail Sales fell -0.5% in October. Adding to the global slowdown, Japan Industrial Production fell -4.2% in October.

Asian equities led global markets lower in overnight trading with crude oil being dumped when U.S. markets opened. Investors eagerly bought the dip in stocks in early trading as they bid Treasury yields higher despite a clearly deflating global economy. Treasury yields closed an overnight gap from early this week in early trading.

The New York Fed accepted bids for $88.45 billion in overnight dollar loans as the dollar liquidity problem persists.

Stocks and bonds closed lower on the day on fairly strong volume for an early market close. Thirty-year Treasury yields continue to reaffirm their overhead resistance level from 2016, which continues to suggest yields are headed lower, not higher.

All Loans and Leases at commercial banks are growing at +0.78% on a quarterly basis, commercial and industrial loans are contracting at -0.91% on a quarterly basis, and real estate loans are growing at +0.98% on a quarterly basis. Lending growth remains very weak due to interest rates being too high to spur lending demand.