Market Brief – Monday 11/18/19

In overnight trading, Singapore non-oil exports fell -2.9% in October and -12.3% from a year ago. This is the eighth consecutive contraction for Singapore’s non-oil exports. The South China Morning Post reported that China hasn’t confirmed they will purchase $50-60 billion of agricultural products and so far has been unwilling to make any commitment other … Read more

Market Brief – Friday 11/15/19

Options expiration is today as speculators will cash in on $16 billion if the SP 500 hits 3,100, which explains the relentless bid under equities the past few weeks despite weakening global economic data. It also explains why speculators have been shorting Treasury bonds as they are using the proceeds to bid equities higher. With … Read more

Market Brief – Thursday 11/14/19

In overnight trading, the global economy continues to worsen. Japan’s GDP growth fell from +1.8% Q2 to +0.2% Q3 from a year ago. Australia, which has the most indebted households in Asia, lost -19k jobs in October with -10.3k being full-time jobs and -8.7k part-time jobs. China’s fixed-asset investment, which measures the total change in … Read more

Market Brief – Wednesday 11/13/19

In overnight trading, German CPI for October increased +0.1% and remained at +1.1% from a year ago. Great Britain CPI for October fell -0.2% and slowed to +1.5% from a year ago. Excluding food and gasoline, Great Britain Core CPI for October increased +0.1% and held at +1.7% from a year ago. Great Britain PPI … Read more

Market Brief – Tuesday 11/12/19

In overnight trading, India’s September Industrial Production fell -3.9% MoM and -4.3% YoY as further evidence the global manufacturing base is contracting. Singapore September retail sales fell -2.2% YoY for the seventh straight month. Japan October Machine Tool Orders fell -37.4% YoY. Nissan, the automobile manufacturer, reported a 70% drop in quarterly profits. German ZEW … Read more

Market Brief – Monday 11/11/19

The bond market is closed on Monday in honor of Veteran’s Day, while the OTC and equity market remains open despite most traders and money managers being off for the holiday as evident by light trading volumes. From Sunday night, China’s October CPI came in hot at +3.8% and PPI fell to -1.6% as China … Read more

Here Comes the Repo Man

In September, cash stopped flowing in the financial system which caused the Federal Reserve, or the lender of last resort, to come to the rescue to unfreeze the financial system. In what is being referred to as a “technical malfunction” of the financial system, the overnight repurchase interest rate rose over the Fed’s target interest … Read more

Market Brief – Friday 11/8/19

In overnight trading, China’s October exports were -0.9% and imports fell -6.4% for the sixth month in a row, both on a year-over-year basis. Investors continue to bet on reflation, but with exports and imports from China and the U.S. falling, reflation won’t come until both turnaround. The director of the White House’s National Trade … Read more

Market Brief – Thursday 11/7/19

In overnight trading, computer algorithms mistranslated a report out of China, written in Chinese, to say that China and the U.S. had reached an agreement to roll back the tariffs as the trade deal progresses. The actual statement, which was clarified later by China, said there would be no “Phase One” trade deal unless there … Read more