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Writer's pictureStéphan

BoJ unch / PBOC, China interventions / Exxon / DOW 38K / BTC <40K after ETF launch / UST auctions



  • China’s Premier Li Qiang orders authorities to attract long-term capital to stabilise stock market after trillion-dollar rout >>> by printing first..the PBOC just added $150B to its balance sheet in December, this brings the total increase to almost $850B just in the last 5 months and then China 'mulls stock market rescue package backed by $278bn'' - (Chinese and HK stocks have lost a combine $6.3 trillion from the 2021 peak valuations!)

  • BoJ's Ueda: Policy change is possible even when there is no update to quarterly outlook >>> overall still looking for a move in Q1, most likely March, might be delayed after their financial new year in April

  • $162bn of UST auctions this week, $60bn 2y today, 61bn 5ytom and 41bn of 7y Thursday >> should give market a good feel for appetite out there for govt debt

  • Christine Lagarde makes a poor central banker, ECB staff say .‘Mario Draghi was there for the ECB while the ECB seems to be there for Christine Lagarde,’ one staff member writes in major survey.

  • BTP's premium over Germany has fallen to 152bps, lowest in 2years (was closer to 100bps in summer 2021, before rates pushed higher globally

  • "Our analysis indicates a labor market returning to pre-pandemic norms, best characterized as a somewhat tight labor market that does not pose an inflation problem" --GS

  • USA now up to 64% of the global stock market/MSCI world

  • Fishing ban to protect dolphins in Bay of Biscay comes into effect

  • Intermarché confirmed Unilever is to take the French retailer to court in the latest row in the country between grocer and supplier over prices >>> you can't mock the products of others ?...will be interesting to see what the law says...the 'law' says you are supposed to play fairly

  • ExxonMobil is suing its own shareholders over a proposal aimed at reducing emissions

  • "Geopolitical fragmentation is one of the reasons we see persistent inflation pressures - and policy rates staying above pre-pandemic levels...We expect deeper fragmentation, heightened competition and less cooperation between major nations in 2024:" BlackRock


 

Markets :


  • UST yields slightly higher ahead of UST auctions and key data >>> 4.2% in 10s UST key level technically

  • USD not doing much, tiny JPY reaction to the Ueda headline above, broadly speaking all pretty quiet in FXland, overall our focus remain on 'sign of CHF weakness' going forward. USDCNH a little softer on PBOC action

  • Equity markets pushing higher, DOW hit 38K for 1st time. NIKKEI very close to hitting new all time highs that were set some 35 years ago, meanwhile chinese stocks have hit their lowest valuation relative to US stocks in history, is it time ? #HSI >>> going shortly into full U.S earnings season

  • Zero Day Options (ODTE) volume surged last week to 49% of all options volume, just shy of an all-time high

  • BTC sub 40K >>> as expected...those ETF's were a classic opportunity for a ramp-up in price ahead of the event, highs seen on ETF launch..


 











FRANKFURT — On the global stage, European Central Bank President Christine Lagarde still exudes the air of an international rockstar of finance, but back home her records just won’t sell



Everything you need to know about your electricity bill going up on February 1, 2024 | economie.gouv.fr >>> via subsidies, the French government covered about 35% of electricity cost for families an small businesses..


Really...!!?



Hand Seng 50 - time for a little contrarian trade ? #HK50





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