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Writer's pictureStéphan

AfD on EU / De Santis out of race / Red Sea tensions / SPX500 4800+ break, QQQ lead & HSI 20y lows



  • Our hot chocolate is getting very expensive ! cocoa prices on 46y highs

  • Week ahead : BoJ tonight (market expectations are for 'unch', but BoJ does like to surprise, overall view though, they will move in March 2024), EZ flash Dec PMI and BoC on Wed, German IFO and ECB rate decision on Thursday + Q4 U.S GDP and finally U.S Dec core PCE on Friday

  • Ron DeSantis dropped out of the 2024 US presidential race and endorsed Donald Trump. He left before Tuesday’s New Hampshire primary, where a CNN poll had him at 6% to 50% for Trump and 39% for Nikki Haley. Haley is getting support from Wall Street, with Stanley Druckenmiller, Henry Kravis, Ken Langone and Cliff Asness planning a Jan. 30 fundraiser.

  • An internal investigation has found that Joe Biden’s administration is failing to track foreign ownership of U.S. farmland, after it was recently discovered that the second-largest foreign landowner is a Chinese Communist Party (CCP) member

  • Red Sea 'scary' for ships' crews, says captain. Marsh says insuring a container ship is up 70 times since the Red Sea troubles began European manufacturers and retailers face ‘chaotic’ period after Red Sea attacks >>> Upward Pressure on Goods Inflation

  • US corporate bond markets are “on fire” as companies have sold a record $150bn of debt since the start of this month, the busiest opening to the year for more than three decade-FT (rushing before rates head higher?)

  • JP Morgan reaffirms its year-end 4200 price prediction for the S&P 500 >>> the lowest S&P target for 2024

  • EU seeks ‘consequences’ for Israel over opposition to Palestinian statehood. Bloc’s foreign ministers step up pressure on Netanyahu to reverse his resistance to two-state solution

  • FT - This isn’t your father’s S&P 500. Don’t worry about valuations'', that's some headline!

  • In Germany, the AfD is now officially leading the polls >>> Weekend of mass protests held across Germany to decry far-right AfD >>> ''the party will push for a Brexit-style referendum on membership of the Eu if it comes to power, said its leader Alice Weidel, ''if reforming the EU isn't possible, we should let the people decide''

  • The Biden administration discharged another $4.9 billion in student loan debt for more than 73,600 borrowers, the Education Department announced

  • Xi's Anti-Corruption Campaign Risks Long-Term Destabilization in China

 

Markets :

  • SPX5600 breaking that double top at 4'800, it is now 12% higher than when the FED started hiking rates in March 2022 >>> a lot of research coming out looking at chasing laggers, small caps, Europe, healthcare and so on, and why not indeed! >>> fair to say the contrarian trades have been battered so far, HSI back to 15K which is where it was at the handover in 1997...while Mag 7's rallying hard, MSCI China back to near levels not seen since 2009, and NIKKEI back up to 34year highs

  • "0dte options volumes have surged to a new high, averaging 1.8mn contracts over the past 5 days and 49% of total options volumes" --Citi

  • 10's UST 4.12, beware if bonds sell-off gathers momentum above 4.20% yield area


 








Is America overpriced? (ft.com) >>> There is an historically large premium on the S&P 500, when compared to markets in the rest of the world. That reflects strong outperformance in the past decade, but can that last? Today on the show, hosts Ethan Wu and Robert Armstrong evaluate the emerging markets vs US trade. Also, we go long insurance, and short polyamory





Designed to attract foreign business, it was cut in an immigration overhaul after the government found it was "delivering poor economic outcomes"


EURCHF needs 0.9550+ to gets the bulls interested


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