FinSer 

 Financial Focus

December 13, 2019 

 

GOOD MORNING!    As world famous market expert Yogi Berra once said, “If the world was perfect, it wouldn’t be.”  Just when the fake ‘experts’ thought the markets were getting US – China trade fatigue, they were proven wrong, with trade still ruling the markets.  Tweets/reports/headlines/rumors about a phase-1 trade deal was getting close to being done and that President Trump signed off on retracting or reducing existing and proposed tariffs injected optimism into the markets and goosed the S&P and NASDAQ Composite to new record highs.  Also reducing optimism and improving investors’ risk-on sentiment was new ECB President, Christine Lagarde, saying a lot, but nothing really new and updates that UK voting would provide a clear majority that may be able to push Brexit to the finish line.  Treasury yields climbed with stocks until day traders covered their shorts late in the afternoon.  Overnight, foreigners once again to have bought the dip and have Treasury yields slightly lower in very early trading.  There may also be some buying by investors with memories that the history of US-China trade talks has been saw-toothed with ups and downs, one step forward-one step backwards, ying and yang for our Chinese readers.  Global stocks also rallied overnight and into the morning on the perception that risks have been reduced.  US stock index futures are up, suggesting that US stocks may extend their gains further up into rarified air.  Commodities are also joining in the upside move.  A look at trading screens indicates that everything is being bought.  However, prior to stocks’ opening bell, November’s retail sales will be released.  This economic release has a history of being volatile and having major revisions that befuddle economists (No surprise there.)

                      

GENERAL
TODAY             
PREVIOUS        
FED FUNDS
1.50% to 1.75% 1.50% to 1.75
1 MONTH LIBOR
1.74050% 1.71763%
S & P 500
3169.57 3141.63
GOLD
1475.00 1479.70
YEN
109.65 108.64
EURO
1.1182 1.1132
WEST TEXAS CRUDE
59.18 58.76
T-BILLS
YIELD                
YIELD                 
3 MONTH
1.54 1.55
6 MONTH
1.54 1.55
1 YEAR
1.53 1.53
T-NOTES / BONDS
YIELD                 
YIELD                  
2 YEAR
1.64 1.60
3 YEAR
1.66 1.61
5 YEAR
1.71 1.64
10 YEAR
1.88 1.80
30 YEAR
2.30 2.23

Data Source: Bloomberg Financial Markets