| | | The NDX has had a really neat rebound and was just up on the day..... However it did an about face and sold off into the close..... We have had a pretty complicated day with quite a bit of price action in multiple markets.....
One of the big things is with the big sell off all along the yield curve in the US, it is making the curve start to look flatter..... if that were to continue, it takes the wind out of the sales of the banks and financial issues since the funding costs rise.
The USD is break out to higher levels as it really leaves that 100 level behind and beneath it.
There is really alot of significant activity that has just occurred in the currency, interest rate, commodity and geopolitical world.
Especially Trump's meeting with the Sultans of Silicon Valley.... what will the storylines be? Will we be seeing innovation and other positive results.
this is actually a day that will have to be assimilated and pondered....
The problem with the USD getting to strong is that it puts strains on the overseas economies with currency
pegs to the USD, while additionally putting strains on all of the USD denominated debt, deal etc that are done
around the world especially the Pacific Rim.
John
----------------------------
addendum..
Message 30886842
china has already been showing signs of having a cold........ We have to see Trump not press too many buttons on the Chinese.. ..the Chinese leadership is most likely off balance and really on guard with what exactly the fall out of a Trump administration will lead to, and they are obviously seeing the potential US pivot to working more in concert with Russia.
China has a number of fresh warning signs from issues of a crack down on speculation in sectors of the stock market... The Currency -- YUAN is depreciating as interest rates go up and concerns of Capital flight have given us fresh indications of this going on.... It may be partly driving up the price of Bit Coin recently
China1. Let’s begin with China, where the stock market stumbled again as the Chinese authorities continue their arbitrary acts of rulemaking. This time they hit the insurance industry, criticizing some of the larger firms for buying stocks.
China Vanke, a developer who was apparently being acquired last month, slumped another 6% as a result of the officials’ criticizing leveraged buyouts (ending the acquisition).
2. The nation’s government bond yields rose further, with corporate yields following. The selloff in the corporate sector has been especially acute at the short-end of the curve. Are we seeing some redemptions from wealth management products (WMPs) who tend to hold a great deal of corporate debt?
3. The renminbi is expensive to borrow in Hong Kong again. Rates have been rising quickly for term loans (as opposed to overnight). Here is the 3-month yuan HIBOR rate.
Part of the reason for the tighter offshore yuan market is Hong Kong’s decline in yuan time deposits. Hong Kong residents used to open renminbi accounts to get a much higher rate relative to the Hong Kong dollar. But after the August 2015 devaluation, deposit volumes have been declining. Beijing’s tightening of capital controls is also reducing the yuan availability in Hong Kong.
4. The renminbi implied volatility jumped in recent days as investors brace for more currency declines.
5. Bitcoin hit a multiyear high as market participants continue to point fingers at China’s residents.
6. Many ask where the rest of Asia will stand in a US-China trade dispute. Here are the China- vs. US-bound exports from the largest Asian economies (ex-Japan).
Source: Barclays, @NickatFP, @joshdigga
7. China’s latest batch of economic releases looks quite stable. In fact, some argue that these figures are too stable to be real (with only minimal fluctuations on a year-over-year basis).
• Industrial Production:
• Retail Sales:
• Fixed Asset Investment:
8. China’s Western acquisitions spiked in 2016. With Bejing concerned about capital outflows, will all this shopping spree slow down next year?
Source: @Bfly, @business, @Tmp_Research; Read full article
Back to Index
AsiaThis chart shows the dramatic decline in South Korea’s Park Geun-hye approval ratings – ultimately leading to her impeachment.
 |
|
|
|
