Traders Market Weekly: Santa Claus Came to Town

Viewing 15 posts - 16 through 30 (of 97 total)
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    The big move in oil ($74.09/bbl, +2.30, +3.2%), which is tied to geopolitical angst related to the understanding that several shipping companies have suspended travel through the Red Sea, including BP, because of attacks on vessels by Houthi militants, has contributed to selling activity in the Treasury market.

    The 10-yr note yield is up four basis points to 3.97% and the 2-yr note yield is up one basis point to 4.47%.


    Crude Oil Futures 73.32 1.89 2.65
    Brent Crude Futures 78.57 2.02 2.64
    Gold Futures 2036.40 0.70 0.03
    Silver Futures 24.055 -0.099 -0.41
    Natural Gas Futures 2.578 0.087 3.49
    Unleaded Gasoline Futures 2.1831 0.0461 2.16


    Nikola founder Trevor Milton sentenced to 4 years in Prison for defrauding investors about readiness of $NKLA technologies to boost its share price.
    Found guilty on 3 counts last year, each of which carried a max of between 20 and 25 years. via FT

    Trevor Milton, the founder of hydrogen-powered truckmaker Nikola, was sentenced to four years in prison on Monday for defrauding investors about the readiness of his start-up’s technologies in order to boost its share price.

    The 41-year-old was found guilty on three counts last year, each of which carried a maximum sentence of between 20 and 25 years.

    Milton’s lawyers had previously appealed to the court for leniency, arguing earlier this month that the former chief executive “never did anything to hide what he was doing or saying”, created no “phoney” documents and did not “lie to his accountants, auditors or lawyers” about the company. Prosecutors had sought an 11-year sentence.


    US prepares new force to protect Red Sea ships after Houthi attacks

    US defense secretary Lloyd Austin has said he would convene an international meeting on a spate of recent Houthi attacks on commercial ships in the Red Sea.

    Austin is expected to announce a new maritime task force to address the increased threat posed by the Houthis while travelling in the Middle East this week.

    “We’re taking action to build an international coalition to address this threat,” Austin said on Monday.

    He did not offer more details but US officials have said they are looking at ways to expand an existing 39-member international task force in the Red Sea and Gulf of Aden.

    “We’re doing everything that we can to ensure freedom of navigation in the area”, Austin added.


    European stocks close lower as consumer stocks weaken

    European stocks closed lower on Monday as declines for consumer cyclical stocks outweighed rising prices for energy groups who stand to benefit from higher oil prices.

    Stoxx Europe 600 lost 0.3 per cent
    France’s Cac 40 fell 0.4 per cent
    Germany’s Dax fell 0.6 per cent.

    London’s FTSE 100 rose 0.5 per cent thanks in part to energy groups.
    BP added 1.6 per cent and Shell rose 1.4 per cent as oil prices jumped.




    Dow 37,306.02 0.86 0.00%
    S&P 500 4,740.56 21.37 0.45%
    Nasdaq 14,904.81 90.89 0.61%
    VIX 12.53 0.25 2.04%
    Gold 2,040.50 4.80 0.24%
    Oil 72.62 1.19 1.67%


    Equity indices in the Asia-Pacific region were mostly higher, sporting modest gains.

    Japan’s Nikkei: +1.3%,
    Hong Kong’s Hang Seng: -0.7%,
    China’s Shanghai Composite: +0.1%,
    India’s Sensex: +0.2%,
    South Korea’s Kospi: +0.1%,
    Australia’s All Ordinaries: +0.9%.

    Japan’s Nikkei rallied on the back of a unanimous decision by the Bank of Japan’s (BOJ) Policy Board to leave its short-term policy rate unchanged at -0.10%. That decision was not a surprise, but it was a bit of a pleasant surprise to market participants that there was no implication in the policy directive that the BOJ will be exiting its negative interest rate policy.

    The directive said the BOJ will “patiently continue with monetary easing while nimbly responding to developments in economic activity and prices as well as financial conditions,” given extremely high uncertainties surrounding economies and financial markets at home and abroad. USD/JPY +1.4% to 144.67, as the BOJ’s easy position has weighed heavily on the yen.

    Australia’s All Ordinaries outperformed, keying off the reflection in the RBA Minutes that the case for leaving the cash rate target unchanged at the latest meeting was the stronger one.


    Hong Kong’s
    November Unemployment Rate 2.9% (Prior 2.9%)

    New Zealand’s
    December ANZ Business Confidence 33.2 (Prior 30.8)

    An IMF report showed a forecast for 6.3% GDP growth for India in both 2023 and 2024.


    Major European indices are mixed and little changed from yesterday’s closing levels, battling conflicting views on when the ECB might eventually cut interest rates.

    —Equity Markets—

    STOXX Europe 600: +0.3%
    Germany’s DAX: +0.4%
    UK’s FTSE 100: +0.1%
    France’s CAC 40: -0.1%
    Italy’s FTSE MIB: +0.2%
    Spain’s IBEX 35: +0.4%


    ECB member Villeroy suggested the ECB could be able to lower rates sometime in 2024.
    Fellow ECB member Simkus thinks the market’s expectations for rate cuts are too optimistic, according to Bloomberg.
    Notably, the ECB has raised capital demands for 20 large banks because of unpaid loans, according to Reuters.

    The eurozone’s final year-over-year CPI readings for November were in-line with the preliminary reports of 2.4% for CPI and 3.6% for core CPI.

    German government is planning to sell less debt in 2024 than it did in 2023,
    EU is prolonging its tariff suspension for US products related to the steel and aluminum dispute to March 31, 2025.

    Eurozone’s November CPI -0.6% m/m (expected -0.5%; last 0.1%) and 2.4% yr/yr (expected 2.4%; last 2.9%);
    Core CPI -0.6% m/m (expected -0.6%; last 0.2%) and 3.6% yr/yr (expected 3.6%; last 4.2%)


    Prime Minister Sunak confirmed a General Election will be held in 2024, not 2025
    UK’s December CB Industrial Trends Orders -23 (last -35)


    Accenture (ACN 335.20, -6.65, -2.0%): beats by $0.13, reports revs in-line; guides Q2 revs below consensus; reaffirms FY24 EPS guidance, revs guidance
    HEICO (HEI 189.50, +5.87, +3.2%): beats by $0.06, beats on revs


    Amgen (AMGN 279.54, +4.06, +1.5%): upgraded to Outperform from Market Perform at BMO Capital Markets


    Salesforce (CRM 263.52, -0.07, -0.03%): to acquire Spiff

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