December 30, 2019 - Financial Occultist

Only old people prepare for a market crash. If you’re not leveraged at least 3:1 in this market you’re just not living.

German DAX, -0.66%. UK’s FTSE, -0.68%

the major European stock indices are ending the day with declines. The provisional closes are showing:

German DAX, -0.66%
France’s CAC, -0.79%
UK’s FTSE, -0.68%
Spain’s Ibex, -0.74%
Italy’s FTSE MIB, -1.06%
Portugal’s PSI 20, -0.62%

In the European debt market, yields moved sharply higher with the UK 10 year benchmark note leading the way with a rise of 11 basis points.

In other markets as European traders exit:

Spot gold is higher by $5.60 or 0.37% at $1516.18. It is trading at the highs for the day with the low down at $1510.86
WTI crude oil futures are down $0.17 at $61.54, after failing to hold above the $62 level. The high price for the day reach $62.34

The US stocks are trading lower on the day led by declines in the NASDAQ index

S&P index -14 points or -0.44% at 3226
NASDAQ -51.18 points or -0.57% at 8955.82
Dow -129 points or -0.45% at 28514

US yields are also higher with the yield curve steepening. The 2 – 10 year spread has widened out to 34.28 basis points from 29.4 basis points on Friday.

Your guide to China’s ‘big bang’ 2020.100% foreign ownership in financial industry.

30-Dec-19 10:22 am

Analysis

Anirudh Sethi

China will accelerate opening up of its commercial banking and securities sectors, among others, next year.

For example:

foreign insurers can apply to set up 100%-owned units offering life insurance (this segment accounts for three-quarters of the Chinese insurance market)
from January 1 overseas firms will be allowed to set up their own entities to trade futures
offshore firms will be able to apply for licenses to start wholly owned mutual fund management firms in April

And, plenty more here at the link

Yen has been on the move all session, USD/JPY dropping to new lows now

30-Dec-19 10:21 am

Anirudh Sethi

There is no fresh news to account for the move.

The USD is weak pretty much across the board.

Earlier on USD/JPY ticked up a little into the Tokyo fixing. Fix is probably a good description for that move today …

There is no fresh news to account for the move.

Debt in developed economies.

30-Dec-19 06:06 am

Anirudh Sethi

Heads up for China PMIs due this week, Tuesday and Thursday

30-Dec-19 06:01 am

Analysis

Anirudh Sethi

The official China PMIs from the NBS are due on Tuesday December 31 at 0100GMT

Manufacturing expected 50.1, prior 50.2
Non-manufacturing expected 54.2, prior 54.4

Following on Thursday 2 January at 0145GMTwe’ll get the private survey Caixin/Markit Manufacturing PMI for December

expected 51.6, prior 51.8

And, next week, due on Monday 6 January at 0145 GMT its the Caixin/Markit PMIs for Services & also the Composite

Services expected 53.4 prior 53.5
Composite prior 53.2

Expectations, as you see, are for steady sort of levels. With the phase 1 trade deal approaching signing (so we are led to believe) steady PMIs should act as a support for ‘risk’, while downside surprises in the numbers will likely be forgiven.