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China’s President Xi Jinping war on the “disorderly expansion of capital”

  
  Analysis

A piece by Bloomberg on the deciphering of messages for Chinese leadership re the crackdown on the expansion of, mainly, tech companies and ‘platforms.

The basic gist seems to be:
  • “There will be a restructure of the digital economy in the coming years and anything not consistent with the national strategy will get toned down.”
There is much more to the article, its a long piece but poewrhaps a weekend read.
Bloomberg is often gated, but an ungated version is here at Singapore’s Straits Times:
A piece by Bloomberg on the deciphering of messages for Chinese leadership re the crackdown on the expansion of, mainly, tech companies and 'platforms. 

Dow, S&P lower for the fourth straight trading day

  
Analysis, US Market
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NASDAQ down for the second consecutive day

The US major indices are all closing lower with the Dow and S&P down for the fourth straight trading day. The NASDAQ has been down for two consecutive days

A look at the closing levels shows:
  • Dow industrial average fell -150.84 points or -0.43% at 34880.23. The low price reached 34847.30. The high price extended to 35199.89
  • S&P index felt -20.81 points or -0.46% at 4493.26. The low price reached 4492.07. The high price was at 4529.90.
  • NASDAQ index fell -38.38 points or -0.25% at 15248.25.  The low price for the day reached 15245.17. The high price reached 15352.38.
The Russell 2000 also closed lower with a late day selloff pushing the index into the red. It fell -0.60 points or -0.03% at 2249.13
  • Financials rose 0.25%
  • Energy rose 0.13%
  • Materials rose 0.07%
On the negative side:
  • Real Estate fell -2.12%.
  • Healthcare -1.18%.
  • Consumer staples -0.60%.
  • Utilities -0.59%

In other markets as US trading moves toward the close shows the Swiss franc is the strongest while the US dollars weakest.

Major European indices close the day with mixed results

  
Analysis, Global Indices

German DAX, up modestly. UK’s FTSE down 1%

The major European indices are closing the day with mixed results. The provisional closes are showing:

  • German DAX, up 0.1%
  • France’s CAC, up 0.2%
  • UK’s FTSE 100, -1.0%
  • Spain’s Ibex, -0.5%
  • Italy’s FTSE MIB, +0.1%
a snapshot of other markets as London/European traders look to exit shows:
  • Spot gold trading up to dollars and $0.28 or 0.13% at 1791.58
  • Spot silver is up $0.10 or 0.41% $24.04.
  • WTI crude oil futures are trading near unchanged at $69.35
  • Bitcoin is trading up $815 at $46,907.35
in the US stock market, the major indices are higher but off their highest levels:
  • Dow is up 33.18 points or 0.09% at 35063
  •  S&P index is up 2.18 points or 0.05% of 4516.20
  • NASDAQ is up 28 points or 0.18% at 15314.24

EIA US weekly oil inventories -1529K vs -4612K expected

  
  Analysis

Weekly US oil inventory data from the EIA

  • Gasoline -7215K vs -3390K expected
  • Distillates 3142K vs -2617K expected
  • Refinery utilization -9.4% vs -4.9% expected
  • Cushing +1918K
  • Production estimate 10.0mbps vs 11.5 mbpd prior
  • Implied demand -2.866 mbpd
The story here is that refineries ran slower than anticipated, which is going to continue to put a squeeze higher on gasoline prices.

This is a tough one to forecast and trade because of the ongoing effects of Hurricane Ida.
The API data from late yesterday showed:

  • Crude -2882K
  • Cushing +1794K
  • Gasoline -6414K
  • Distillates -3748K

Oil has had a wild ride today as it fell on the China SPR release but has completely recovered. At the bottom, I wrote “Counter-intuitively, I see this as bullish for oil because there’s been an overhang of Chinese inventories weighing on the market.”

Weekly US oil inventory data from the EIA
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