Archives of “December 2019” month

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China’s Global Times warns of downtrend in US-China trade – difficult to reverse

  
Analysis, Politics
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The Global Times is forthright with its views, a good window into China sentiment

Latest piece:
  • It has been 18 months since the US began imposing 25 percent tariffs on the first tranche of Chinese goods, and bilateral trade between the world’s two largest economies is still sliding. 
  • Even with a “phase one” trade deal, the downtrend in bilateral trade will be difficult to reverse. 
  • Meanwhile, China’s total trade actually expanded 2.4 percent year-on-year in the first 11 months, indicating that trade with the US is not irreplaceable for China. 
Bolding mine.
More here, but the gist of it:

The UN Security Council will meet this week to discuss North Korea

  
Analysis, Politics
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Reuters (citing diplomats and a request from the United States) report the council will meet on Wednesday

  • it will discuss North Korea’s recent missile launches
Over the weekend NK conducted an unspecified “very important test” at its Dongchang-ri satellite launch site
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I wonder if we’ll see a yen response? NK issues have, in the past, prompted yen buying (a flight to liquidity response, the USD also a beneficiary) but this has diminished.
North Korea kim yen

US Major indices close just off session lows

  
Analysis, US Market
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tocks not three-day winning streak

The US major indices are closing just off session lows and in the process have snapped the 3 day winning streak.
The final numbers are showing:
  • S&P index, -9.95 points or -0.32% at 3135.96. The high reached 3148.87. The low extended to 3135.46
  • Nasdaq index closed down -34.7 points or -0.4% at 8621.82. The high reached 8678.85. The low extended to 8619.77
  • The Dow closed down -105.39 points or -0.3% at 27909.67. The high reached 28010.42. The low extended to 27906.14
The ranges of the major stock indices
Some winners today included:
  • US steel, +10.63%
  • Bristol-Myers Squibb, +2.29%
  • Slack, +2.2%
  • Deere & Company, +1.65%
  • Qualcomm, +1.31%
  • Target, +1.13%
  • Papa John’s, +1.12%
  • Home Depot, +1.06%
  • Tesla, +1.05%
  • IBM, +0.53%
  • Visa, +0.43%

Some losers today included:

  • Micron, -3.15%
  • Beyond Meat, -2.85%
  • Rite Aid, -2.29%
  • Intuitive Surgical, -2.10%
  • AMD, -1.77%
  • Alcoa, -1.75%
  • Stryker, -1.73%
  • Netflix, -1.52%
  • AliBaba, -1.58%
  • Apple, -1.39%
  • Goldman Sachs, -1.2%
  • Walt Disney, -1.0%

US auctions off $38 billion of 3 year notes at 1.632%

  
  Analysis
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That is below the WI level of 1.634%

  • high yield of 1.632%. That is below the WI of 1.634%
  • bid to cover 2.56x vs six-month average of 2.48x
  • Directs 23.8% vs six-month average of 16.8%
  • Indirects 49.1% vs six-month average of 49.5%
  • Dealers take 27.1% versus six-month average of 33.7%
Overall, decent demand. The yield stopped through the WI level by a touch. The bid to cover was higher than the six-month average. Dealers took down a relatively small amount suggesting decent demand.

Sources: China purchases 5 cargos of soybeans from the US

  
  Analysis
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About 300,000 tonnes

Sources are saying that China has purchase 5 cargoes of soybeans from the US. That is about 300,000 tonnes.  That is above an earlier report of two cargoes or 120,000 tonnes.
There are also unconfirmed reports that China is preparing for the December 15 tariffs to be enacted.

European shares end the session lower

  
Analysis, Global Indices

US shares move back into the negative as well

The major European markets are now closed and are closing lower on the day.
The provisional closes are showing:
  • German DAX, -0.45%
  • France’s CAC, -0.58%
  • UK’s FTSE 100, -0.13%
  • Spain’s Ibex, -0.27%
  • Italy’s FTSE MIB, -0.97%
In the European debt market, the benchmark 10 year yields are also trading lower today led by a -7.2 basis point decline in the Italian issue.
US shares move back into the negative as well_
In other markets, US stocks are back in the red after a run higher into positive territory ran on steam:
  • S&P index, -0.05%
  • NASDAQ index, -0.05%
  • Dow industrial average, -0.22%
In the US debt market, US yields are now mixed with the 2 year up 1.0 basis point and the 10 year down -1.4 basis points.
US yields are mixed
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