Archives of “July 2019” month

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North Korea fired multiple unidentified projectiles early Wednesday

  
Analysis, Politics

According to Yonhap citing South Korean military

A report from Yonhap news agency citing South Korean military, the North Koreans have fired multiple unidentified projectiles early on Wednesday.

No other details as of yet.

President Trump said on Friday, that he is not bothered by North Korea’s decision to fire two short-range missiles this week.  He may not be concerned but Asian neighbors are.

Trump said “short-range” was the most important word. He says North Korea fired “standard” missiles many countries possess.

They were the first weapons North Korea has launched in more than two months. Apparently they are at it again.

US Indices ends in the red. Dow snaps 3-day winning streak.

  
Analysis, US Market

US yields down marginally as FOMC rate decision awaited

The US stocks are ending the day in the red. In the process, the Dow has snapped a 3 day winning streak.  The Nasdaq and S&P are down 3 of the last 4 trading days.
The final numbers are showing:
  • The S&P index -7.79 points or -0.26% at 3013.18. The high reach 3017.19 while the low extended to 3000.94 (just above the 3K level).
  • The NASDAQ index fell -19.715 points or -0.24% at 8273.61. The high reached 8295.46. While the low extended to 8228.02 on the day.
  • The Dow fell -23.33 points or -0.09% at 27198.02. The high reached 27224.36. The low extended to 27069.86.
Below is a visual of the %low and %high and %close for the North American and major European indices. The Russell 2000 of small cap stocks seems to be the only index that moved higher today.
US yields down marginally as FOMC rate decision awaited
In the US debt market, yields are ending the session lower, with both the 2-year and 30 year down -1.2 basis points.
US yields are ending the session marginally lower

Australian dollar sinks for 8th consecutive day

  
Analysis, Forex

Fresh lows in the Australian dollar

Early last week it looked like the Australian dollar was breaking out as it hit at three-month high. Instead, it’s resulted in a brutal turnaround and 8 straight days of declines.
The pain extended today in the past few minutes as AUD/USD fell to a session low at 0.6871 — the worst since June 19.
Fresh lows in the Australian dollar
This is really a story about the Fed.
Falling rate cut expectations are giving the US dollar a boost while stoking worries about global growth.
Technically, the way the pair broke through the mid-July low is a negative sign. It will need to show some kind of life ahead of the June low of 0.6832.
Excluding the flash crash at the start of the year, that level matched the 2016 low and is a huge level. Given that we’re near oversold levels, and that support is nearby, there is a case for buying the Aussie but a better trade might be to wait and sell on a break lower.

Trump says there will be a great deal with China or none at all

  
Analysis, Politics

Comments from Trump

Trump lawn
I don’t think his rhetoric is going to make a deal any easier.
In the next breath he said China talks were going well, so who knows where they stand. However Global Times editor Hu Xijin responded to Trump’s earlier tweet with this:
“Whenever it’s time to negotiate, the US side comes up with the trick of piling pressure. Really not a good habit. Americans need to change their negotiating style, show more sincerity, not just wield stick. The past one and half years have proved big stick is useless to China.”
Does anyone think a deal is going to happen?
More from Trump, who is speaking to reporters:
  • Fed moved far too early and far too severely
  • Would like to see quantitative tightening stopped
  • Would like to see a large rate cut before year end
  • Says he is disappointed in the Fed
  • Says he’s not sure if he will accept China’s offer in talks
  • Says it’s up to him, not China, for a deal to be reached

EU reportedly set to call Boris Johnson’s bluff on no-deal Brexit

  
  Analysis
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The Sun reports, citing sources from the European Commission

Brexit

The report says that European leaders can see that it is clear Boris Johnson is trying to build pressure by running down the clock and try to use the European Council meeting in October to demand major concessions on Brexit.

Hence, they are instead planning to turn the October meeting into one preparing for a no-deal Brexit by 31 October instead – by discussing contingency measures and communiques bracing businesses and financial markets ahead of deadline day.
Citing a senior EU source, the report adds:

“It’ll be about where are we heading with the Brits, where do we stand with the implementation of contingency measures. If we’re really in the deal making business this is not a thing you invent on a small piece of paper on the corner of a table at 3am. You don’t do a deal by simply arriving on the 17th after having had a kind of general exchange about what they think in Britain now.”

The political game of chicken resumes again as Johnson is trying the same old trick that May pulled in March this year, only to have led to an extension of the Brexit deadline.
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