Xinhua with the report
Also:
- China’s vice premier Liu he spoke by telephone with US trade representative, Treasury Secretary
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rssFox reports the White House want a trade deal – hope to lift US stock prices 2000 points!
“We believe that a real trade deal with China will take the Dow (Jones Industrial Average) up around 2,000 points
We don’t believe a significant deal is already baked into stock prices”
Take this FWIW, Fox citing “one senior White House economic adviser, speaking on the condition of anonymity’
More:
- At current levels that would bring the Dow to the 27,700 level, exceeding the record high of 26,828 reached in October 2018.
Link for (not very much) more
US (record) debt soars over $22 tln. Here’s when the USD is likely to “flash red” warning.
Comments on what to watch for if the USD drops as a warning government debt is at unsustainable levels,
- currency would likely “flash red” should financing costs outstrip growth
- and interest payments spur a “snowball” in the debt burden as a share of the economy
“Of the market variables that can best flag when policy is overreaching, the exchange rate is likely to be best at playing the role of ‘canary’ — flagging …. excess”
Comments from Deutsche Bank, not an imminent warning but something to keep in the back of your mind. Applies to other countries also, of course.
US major indices end the day with modest declines
The three day run higher in S&P and Nasdaq is over
The US major indices are ending the day with modest declines. That breaks the 3 day up streak for the Nasdaq and the S&P. The Dow actually closed with a modest gain today.
The final numbers are showing:
- The S&P index is down -2.44 points or -0.09% at 2808.48
- The Nasdaq index is down -12.495 pointe or -0.16% at 7630.91
- The Dow is up 7.05 poiints or 0.03% at 25709.94
Some winners included:
- General Electric, +2.79%
- Charles Schwab, +2.0%
- Adobe, +1.25%, Adobe announced earnings after the close with revenues and earnings beating estimates, but guidance is a weaker than expected.
- Intuit, +1.23%
- Visa, +1.18%
- Celgene, +1.13%
- Apple, +1.11%
- Nike, +1.09%
- Southwest airlines, +1.07%
- J.P. Morgan, +0.93%
Some losers today:
- AMD, -2.4%
- Facebook, -1.85%
- Nvidia, -1.81%
- Intel, -1.71%
- Broadcom, -1.15%
- Micron, -1.08%
- Boeing, -1.04%
- Twitter, -0.89%
- Netflix, -0.66%
- Alphabet, -0.65%
Thought For A Day
European shares end higher
Yields are mixed
The provisional closes for the European stock markets are showing mostly higher levels on the day. The numbers are showing:
- German DAX, +0.20%
- France’s CAC. +0.86%
- UK’s FTSE, +0.42%
- Spain’s Ibex. +0.28%
- Italy’s FTSE MIB, +0.62%
IN the 10 year benchmark note market, yields are ending the session mixed.
US yields are showing a steepening of the yield curve today with the 2 year down -0.6 bps and the 30 year up 2.8 bps.
How to be a millionaire?
OPEC urges oil producers to prevent return of surplus this year
OPEC comments in its monthly statement
- 2019 global oil demand growth forecast unchanged at 1.24 mil bpd
- Encourages OPEC members to continue with output cuts strategy
- Says that producers are responsible for preventing return of imbalance
- Says ‘strong growth’ in non-OPEC output highlights need for OPEC+ producers to continue supporting market stability this year
More to come…
Dollar holds firm as US, China said to push back meeting between Trump, Xi
The greenback remains steady as risk assets decline
Of note, EUR/USD touched a low of 1.1305 while AUD/USD and NZD/USD are also trading at session lows respectively of around 0.7050 and 0.6816. The dollar was already holding firm on the day against the major currencies bloc but the news of a postponement to the Trump-Xi meeting just pushed the greenback a little higher.
This comes as equities pare earlier gains as seen by US equity futures here:
Long Treasury Bond Positioning
