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Writer's pictureStéphan

Solar stocks / SPX500 4380-4400 & ZNc1 108.50 res / 30y auction 5bps tail / Powell :data dependent



  • Powell : not confident rates were high enough, but the bar for another hike is pretty high overall, given lag impact of recent hikes still to be digested >>> data dependent, with higher inflation overall, a cyclical downturn beginning to take shape and China trapped in D-flation

  • US government debt is on track to surpass $50 trillion by 2033. That means $5.2 billion is piling up every day/BoA

  • Mario Draghi delivers downbeat outlook for EU economic growth. Bloc is falling behind its global counterparts, says former ECB president

  • Portugal president calls March snap election, leaves time to pass budget

  • Nvidia will reportedly sell new chips to China that still meet U.S. rules

  • The Xi-Biden summit in San Francisco comes at a critical juncture for the United States and China as the global giants attempt to strike a balance amid strategic competition in an increasingly precarious world

  • Israel has no plans to occupy Gaza after its war against Hamas is finished, Benjamin Netanyahu has said.

  • FT-'Delinquent commercial real estate loans at US banks have hit their highest level in a decade, as higher interest rates, an uncertain economy and the rise of remote working pile pressure on building owners.'

  • SNB's Schlegel says a temporary increase in inflation via rent is possible

 

Markets :

  • 30y auction, biggest tail on record (but, there is always a but-see below and it was a new issue, super-sized in a refunding month). UMich should not matter, unless out of whack relative to expectations..

  • USDollar picking up strength again/gradually. UST yield much lower last 2weeks and USDJPY On highs

  • SPX500 'topping' around 4380/4400 together with 10's hitting (yield) support around 4.5%. The high(er) cost of capital for longer, will continue to hurt weak balance-sheets, companies without much of an E and definitely those who need to roll debt (if-when too expensive then they will -have- to issue equity..), this is an ongoing process over the next 12-18months still

  • BTC quietly back to 35K

  • VIX on 15 handle - huge delta buying back SPX, purely mechanical, on the yield puke lately (yesterday was always going to be more difficult wiht 30y)

 










Virgin Galactic stock surges nearly 20% after announcing plan for cost savings (msn.com) The share price soared after the company announced a cost-saving initiative, which includes pausing spaceflight operations next year - this is quite a typical market reaction...







Some colourful language in there ! but crickey... to be honest it probably was almost just as bad in other countries... Led By Donkeys on X: "What we’ve learned so far at the Covid inquiry (turns out the Tories are terrible). With @GavinEsler https://t.co/qfqxzfHPzI" / X (twitter.com)




10's UST prices



SPX500



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