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BOJ makes first ETF purchase since 1 October 2021 on Friday

The Topix slumped by 1.4% to 1,977.66 but closed a little off the lows of 1,962.03 earlier in the day, holding at its 200-day moving average. The BOJ has been rather pedestrian in intervening in the stock market ever since the policy change in March last year and that has been evident by the more sideways action in Japanese equities since.

Today’s ETF purchase was the first since October last year but I wouldn’t look much into it unless the BOJ starts to do this more frequently moving forward.

BOJ ETF 14-01

North Korea reportedly fired unidentified projectile towards the East Sea

This is the second time this week, following a similar incident a few days ago here. Tensions are stirring and the frequency of these missile “tests” serves as an indication for how things are developing at the moment. Markets have generally learned to shrug this off but just be wary in case there are any actual risks that may arise.

China December trade balance US$94.46bn surplus

Dollar-denominated trade figures for China in December 2021

Chinese Trade Balance (USD) December 94.46B

  • exp 73.95B, prev 71.72B

Exports (Y/Y) December +20.9%

  • exp 20.0% and prev 22.0%

Imports (Y/Y) December +19.5%

  • exp 27.8%; prev 31.7%

We had the full-year figures earlier:

  • China 2021 total year trade surplus 4.36tln yuan

China’s exports and imports topped $6 trillion for the first time in 2021

ADDED – yuan terms figures:

Imports+16.0%

  • exp. 23.6%, prev. 26.0%

Exports +17.3%

  • exp. 16.3%, prev. 16.6%

Trade Balance 604.7bn yuan

  • exp. 453.7bn, prev. 460.7bn

North Korean hackers stole a total of $395 million worth of crypto coins in 2021

Wired had the report:

  • a nearly $100 million increase over the previous year’s thefts by North Korean hacker groups
  • total over the past five years to $1.5 billion in cryptocurrency alone
  • the seven breaches in 2021 amount to three more than in 2020 (dwon on the 10 in 2018, when they stole a record $522 million)

Link above for more.

US stocks slide into the close

Selling in the major stock indices accelerated into the close, with all the indices all closing near the lows for the day.

  • The NASDAQ index was the biggest loser and fell for the first time in four trading sessions
  • The Dow and S&P broke their two day win streak
  • All three indices are now on track for weekly losses
  • The declines in stock closed despite lower levels in interest rates. The 10 year yield is trading down -3.5 basis points at 1.70%.

The final numbers are showing:

  • Dow fell -175.05 points or 0.048% at 36115.26
  • S&P is down -67.10 points or -1.42% at 4659.19
  • Nasdaq is down -281.57 points or -2.51% at 14806.82
  • Russell 2000 is down -16.62 points or -0.76% at 2159.43

Looking at the Nasdaq index below, the price is now 8.67% from the all time intraday high and looks toward the 200 day MA again at 14719.42. On Monday, the price moved below the MA level on its way to an intraday low at 14530, before bouncing back higher and retesting the higher 100 day MA at 15278.

On a move back below the 200 day MA, there should be more liquidation with the 50% of the move up from the March 2021 low at 14304 and the swing lows from July 2021 and October 2021 at 14181.69 as the next major targets.

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