Archive for November, 2015
Monday, November 23rd, 2015
Via CRT Capital
The 2-year sector is trading weaker this morning, pricing in an outright concession although it's outperforming the belly of the curve. We're apprehensive about this afternoon's auction given the recent pattern of mixed receptions and the looming Fed liftoff hike. Although the FOMC has clearly telegraphed intentions to ...
Posted in Uncategorized | Comments Off on Two Year Note Auction Today
Monday, November 23rd, 2015
The market is rife with stories of a Fed meeting today which will discuss and possibly hike the discount rate. I think the possibility of that happening is virtually nil. This impending rate hike is the single most orchestrated and choreographed rate hike in central banking history. It will not ...
Posted in Uncategorized | Comments Off on Overnight
Monday, November 23rd, 2015
Via Marc Chandler at Brown Brothers Harriman:
Anticipating December in November
- Surveys show that around 90% of primary dealers and economists expect the Fed to raise interest rates in the middle of December
- There is no data from the eurozone that could offset the powerfully dovish signals by ECB President Draghi ...
Posted in Uncategorized | Comments Off on FX
Monday, November 23rd, 2015
Via Bloomberg:
November 22, 2015 — 8:25 PM EST
Updated on November 23, 2015 — 2:18 AM EST
Copper fell below $4,500 for the first time since May 2009 as investors fear China’s shift to a consumer-driven economy from investment-led expansion will slow demand in the world’s biggest user. Nickel lost more than ...
Posted in Uncategorized | Comments Off on Commodity Slump Continues
Monday, November 23rd, 2015
Via the FT:
17 minutes ago
by: Jamie Chisholm
Tumbling metal prices are clearly not great for mining stocks. But should investors fret that this trend portends a significant deterioration in the health of the global economy?
Not so much, says Capital Economics in a note entitled “Time for Dr Copper to be struck ...
Posted in Uncategorized | Comments Off on Disrespecting Doctor Copper
Monday, November 23rd, 2015
Via FT:
Economic growth and job creation in the euro area are running at the fastest clip in four-and-a-half years, according to the closely-watched Markit purchasing managers' indices.
Purchasing managers' indices, which are based on responses from 5,000 companies in the manufacturing and services sectors in the euro area, cover sales, hiring, ...
Posted in Uncategorized | Comments Off on Strong Manufacturing In Eurozone
Monday, November 23rd, 2015
Via Kit Juckes at SocGen:
<http://www.sgmarkets.com/r/?id=hf2f5baa,14e961e5,14e961e6&p1=136122&p2=cea01694dc115a0b2b6b4386bb30981e>
Good Morning. FX Daily above. Everythng is bullish for the dollar except for positioning, which probably doesn't stand in the way of further gains. The Brussels lock-down will see concerns about European growth increase, and there's a high chance of EUR 1.06 breaking. Bund yields can ...
Posted in Uncategorized | Comments Off on Early FX
Sunday, November 22nd, 2015
A large Thai pension fund is allocating assets to developed country equities as it concludes that Fed rate Hikes will weigh on emerging market equities next year.
Via Bloomberg:
Higher U.S. rates to weigh on emerging assets, fund says
Fund looking at Japanese, European equities for next year
Thailand’s Government Pension Fund plans to ...
Posted in Uncategorized | Comments Off on Emerging Market Country on Emerging Equities
Sunday, November 22nd, 2015
Via Bloomberg:
Crude slump undermining kingdom's ability to sustain spending
Currency forwards jump as traders bet exchange rate may change
The longer oil languishes, the more pressure builds on Saudi Arabia to abandon its currency peg.
Contracts used to speculate on the riyal’s exchange rate in the next 12 months climbed to a 13-year high ...
Posted in Uncategorized | Comments Off on Saudi Currency in Riyal Trouble
Sunday, November 22nd, 2015
Via Ed Luce at the FT:
Rumours of the death of American car culture have been greatly exaggerated. The US is on course this year to post its largest vehicle sales since the start of the 21st century. The surge is being led by the return of the sport utility vehicle, ...
Posted in Uncategorized | Comments Off on Rev Up the Engine