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Circa 450,000 tonnes of Australian coal has been unloaded in China

  
  Analysis
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Coal shortages in China have resulted in a degree of capitulation.

China has been refusing to take Australian coal out of spite, not happy with Australia over various political matters. ANZ (overnight summary note) is noting however that the shortages of coal in China, which has resulted in electricity shortages and all of the associated costs to industry and keeping people warm, has prompted China to receive some coal. ANZ say a ‘handful’ of ships have been unloaded, circa 450k tonnes of coal.

SEC head Gensler says the US won’t ban cryptocurrencies

  
Analysis, BITCOIN

An ICYMI from a little earlier, Bloomberg with the article on remarks from Securities and Exchange Commission Chair Gary Gensler

Was speaking at a House hearing after a Republican lawmaker asked if a China-like prohibition was on the table in the US
  • says the US won’t follow China’s lead in banning digital tokens
  • US government’s focus is on ensuring that the industry adheres to investor and consumer protection rules, anti-money laundering regulations and tax laws
BTC gave it a like … adding to gains:
An ICYMI from a little earlier, Bloomberg with the article on remarks from Securities and Exchange Commission Chair Gary Gensler

Major US indices close higher but off their highest levels

  
Analysis, US Market
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NASDAQ recoups 1.25%

The NASDAQ index yesterday took on the chin with a decline of -2.14%. Today the index recouped 1.25% of that decline but it could’ve been better. The index was up as much as 1.78% intraday. It is closing up 1.25% on the day.

Some highlights:
  • Dow industrial average recouped all of the declines from Monday’s trade
  • NASDAQ index has the best day since August 23
  • NASDAQ is still  6.29% below the all-time high. At the low, reached yesterday, the price moved -7.93% from the high
  • S&P index is 4.4% below the all-time high. At its low reached yesterday the index fell -5.87%
  • The Dow industrial average is down -3.68% from its all-time high

A look at the final numbers shows:

  • Dow industrial average rose 3 and 11.73 points or 0.92% at 34314.68
  • S&P index +45.24 points or 1.05% at 4345.71
  • NASDAQ index up 178.36 points or 1.25% at 14433.84
The major indices were buoyed by some short covering and dip buying. Having said that, the S&P index intraday moved back above its 100 day moving average at 4351.31. However the momentum could not be sustained, and the price moved back below that moving average level. For the NASDAQ index, it’s high price reached 14508.65. That was short of the 100 day moving average at 14521.12.
US yields are higher

European indices end the session with solid gains

  
Analysis, Global Indices

Gains of over 1% seen in the European equity markets today

The European major indices are ending the session with solid gains of 1% or more. The provisional closes are showing:

  • German DAX, +1.05%. That was the best session in two weeks.
  • France’s CAC, +1.5%
  • UK’s FTSE 100 +1%
  • Spain’s ibex +1.5%
  • Italy’s FTSE MIB, +1.8%
In other markets as European traders look to exit for the day:
  • Spot gold down $9.28 or -0.52% at $1760.43
  • Spot silver down $0.10 or -0.48% $22.58
  • Crude oil futures up $1.78 or 2.32% at $79.40
  • Bitcoin is trading right around the $50,000 level at $49,990
In the US debt market, the tenure yield has come off the basis point or so from its high level of 1.540%. It currently trades at 1.528%. Other yields are also higher with a steeper yield curve.
US yields are higher but off the highs levels
The USD has seen some selling in the last hour of trading as European traders had for the exits. The USD is trading more mixed after being higher earlier in the US session. The greenback is higher verse the EUR, JPY, CHF and lower vs the GBP, CAD, AUD and NZD.

WTI crude tops $79 for the first time since 2014. What’s next

  
Analysis, Crude

The oil chart looks better and better

The oil chart looks better and better
Whenever there’s a major breakout like we saw in oil yesterday, there’s always a chance of a false breakout.
One positive sign though was that it came on a newsy day with the OPEC meeting providing somewhat of a catalyst. Today’s price action is another good sign as crude hasn’t just consolidated the move to a new range, it’s extended it.
WTI just touched $79 fro the first time since 2014 and is up 1.75% on the day. I would note that this rally is also coming at what’s usually a poor seasonal time of year for oil.
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