Archives of “September 24, 2021” day

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European major indices close the day with declines

  
Analysis, Global Indices

For the week, the major indices close with gains

The major European indices are closing the day with declines, but for the week, they held on to gains.

The provisional closes are showing:
  • German DAX, -0.8%
  • France’s CAC, -1.0%
  • UK’s FTSE 100, -0.35%
  • Spain’s ibex -0.1%
  • Italy’s FTSE MIB -0.4%
For the trading week, the major indices closed higher:
  • German DAX, +0.25%
  • France’s CAC +1.0%
  • UK’s FTSE 100 +1.3%
  • Spain’s ibex, +1.3%
  • Italy’s FTSE MIB +1.0%
in other markets as London/European traders look to exit shows:
  • Spot gold is trading up $9.30 or 0.54% at $1752.30
  • Spot silver is trading down six cents or -0.27% at $22.43
  • WTI crude oil futures are trading up $0.42 or 0.57% $73.72. The low price today extended down to $72.81 before rotating back to the upside
  • Bitcoin is down $-3200 and $41,700
US stock market, the NASDAQ index continues to be the laggard. The Dow Jones and S&P have traded above and below unchanged but are currently back in the red:
  • Dow Jones -48.95 points or -0.14% at 34,717. The high reached up 92.24 points or 0.27%
  • S&P index -5.46 points or -0.12% 4443.50. The high reached 4455.78, up 6.8 points or +0.15%
  • NASDAQ index is down 66 points or -0.44% at 14985. It’s high price reached 15003.60 but that would still down -48.6 points or -0.32%
In the US debt market, the premarket high yield of 1.452% the 10 year was surpassed at 1.463%. The low yield today reach 1.405% before rotating back to the upside. Other yields are also higher with the 30 year up 5.0 basis points and the two year up 1.3 basis points.
For the week, the major indices close with gains

PBOC issues notice to further prevent, dispose of risks from cryptocurrency speculation

  
Analysis, BITCOIN

China strengthens regulation on cryptocurrencies again

  • To strengthen monitoring of risks from cryptocurrency trading
  • Reaffirms that cryptocurrency-related activities are illegal
  • Says overseas crypto exchanges must not provide services to mainland investors
  • To severely punish illegal financing activities related to cryptocurrencies
Bitcoin is taking a significant hit as it falls by over 2.5% to the lows for the day now amid the headlines from China over the past 15-20 minutes.

 

Bitcoin

China state planner issues notice on crackdown of cryptocurrency mining

  
Analysis, BITCOIN

China clamps down further on cryptocurrencies

The China state planner says in the notice that it is to strictly prohibit financial support for new cryptocurrency mining projects and that it will not allow said projects to participate in electricity markets.

 

This is all part of a broad-scale crackdown in Chinese markets with the earlier warning to high commodity prices here.
Bitcoin lurking a little lower on the headlines here, down 0.7% on the day to $44,400.

Nomura slashes China 2021 growth forecast to 7.7% from 8.2% previously

  
Analysis, Economy

Nomura cuts its forecast for China’s growth this year

The firm cites the impact of factories pausing operations amid power outages and the ongoing push on environmental policies as the key reason for the downgrade.

“Over recent weeks, a surging number of factories across China have been forced to cease operations due to higher coal prices hitting power supplies and government mandates to meet carbon emission reduction targets.”

Adding that this will put downwards pressure on growth, alongside curbs on the property sector which have resulted in the Evergrande situation seen currently.

Fitch warns that China mid-tier banks are more exposed to risks in the property sector

  
  Analysis

Fitch remarks in relation to Evergrande

The ratings agency says that it expects China’s mid-tier banks to face greater asset-quality headwinds as credit stress increases in the property sector amid the Evergrande situation. Well, this is in part the contagion risks I suppose.
But all things considered, I reckon Chinese authorities wouldn’t allow too heavy a spillover of any impact towards the financial sector, if they can easily avoid that.

National security law news … this time its the US re chip shortage

  
  Analysis

Bloomberg reported that the Biden administration is considering invoking a US national security law to force companies in the semiconductor supply chain to provide information on inventory and sales of chips

Reuters have info up on some less extreme measures too. US Commerce Secretary Gina Raimondo and White House National Economic Council director met with major companies on Thursday to discuss ways to overcome the semiconductor chip
  • General Motors
  • Ford
  • Apple
  • Daimler
  • Micron
  • Microsoft (MSFT.O)
among the big names.
  • The White House plans to release a voluntary request for information this week to get better information on the chips problem from industry and potential solutions to supply chain issues.
Not these chips but cute pic:
Bloomberg reported that the Biden administration is considering invoking a US national security law to force companies in the semiconductor supply chain to provide information on inventory and sales of chips

ICYMI – Norway’s central bank rate hike Thursday

  
  Analysis
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Norges Bank Norway’s central bank raised its benchmark interest rate on Thursday, raised the sight deposit rate to 0.25%

  • from zero
  • the hike was as expected
The Bank said it expect to do the same again in December, another hike
  • and three more hikes by the end of 2022 (to 1.25%) had become more likely.
The governor of the Norwegian central bank spoke at a press conference after:
  • There is a strong recovery in the Norwegian economy
  • It’s time to start a gradual normalisation of the policy rate

The 10 year yield trades above 100 day MA for first time since June 16

  
  Analysis
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Price cracks above the recent ceiling near 1.385%

The 10 yield yield has moved to the highest level since July 14 and in the process has moved above recent ceiling near 1.385%. The price is also above the 38.2% retracement of the move down from the March 30 high at 1.375% and finally in the 100 day moving average 1.405%. The current yield is trading at 1.415%.
US 10 year yield
The next target will be at the 50% midpoint of the move down from the March 30 high at 1.452% get above that and there is more room to roam with 1.53% as another target area.
Despite higher inflation, and expectations of taper, the 10 year yield is still well below the high for the year at 1.774%. Overseas demand has been very strong especially in the longer end as concerns about Covid and higher rates in the US have investors parking funds in the liquid US debt instruments. With the Fed now targeting inflation over 2% in 2022 and 2023, the real return at 1.415% is negative. Nevertheless, it beats parking funds in France at near 0.07%.

The major US indices close higher with the Dow leading the way

  
Analysis, US Market

The NASDAQ is up for the third day.

The major US indices are closing higher with the Dow leading the way.  Indices are higher despite sharp rises in yields. The NASDAQ index, which tends to be more sensitive to higher rates, did lag, but it still had a gain of over 1% on the day.
The final numbers are showing:
  • Dow up 506.5 points or 1.48% at 34764.82. At the the Dow was up 621.46 points or 1.81%
  • S&P index closed up 53.36 points or 1.21% at 4448.99 it was up 70.16 points at it’s high or 1.6% the NASDAQ index closed up 155.41 points or 1.04% at 15052.25. At the highs, the NASDAQ was up 188.6 points or 1.27%
  • The Russell 2000 index was up 40.48 points or 1.82% at 2259.04
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