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Writer's pictureStéphan

UST 10's : 4.2% key for risk & USD / #TSLA lowers prices again / Jordan at WEF again #USDCHF #GBPCHF



  • WEF : Lagarde, Bostic (in the U.S though), SNB's Jordan up later again (will he confirm yesterday's comments that weakened CHF?), Pakistan PM said he might leave early now (airstrikes with Iran)

  • Lagarde has blamed markets for holding up the ECB’s efforts to tame inflation. Bets on aggressive rate cuts are a distraction that complicates the battle to control runaway price rises, the European Central Bank president warned

  • OpenAI’s Sam Altman says human-level AI is coming but will change world much less than we think

  • Pakistan (WSJ): Carried out airstrikes in Iranian territory killing Pakistani militants there; the action was tit-for-tat retaliation after Iran hit a Jihadi group in Pakistan on Tuesday

  • Tesla slashed car prices again — this time in Europe. Consumers around the world increasingly do not want to pay full price for Teslas, once the leader of the EV market

  • The Hang Seng Index's P/E is now below the Nasdaq's P/B. Those two valuation ratios should not even be anywhere close one another/Thread

  • Google CEO tells employees to expect more job cuts this year


 

Markets :

  • Yields up a little again yesterday, ont eh back of UK's inflation data and US retail sales, UST 10's 4.10-4.20 big level on way up, if we go through this, we are in for more risk-off into month-end, further correcting moves from Nov >>> Fed March cut, now down to 50% probability

  • USDollar follows bonds, and eventually so do equities, broadly speaking >>> January tend to correct moves from Q4, particularly when too consensus and now Central Bank's trying to walk some of those early rate cuts priced in

  • SPX500 4800 double top, corrective activity down to key 4'650 key med-term levels

  • #EURCHF #GBPCHF #USDCHF on their way up, correction higher, gone too far in 2023, overdone, now the CB probably ok with it, given low inflation in CH, decent probabilities looking at actual levels, CB stance, inflation and a decent carry particularly vs USD if you are a $ bull


 











Good for consumers, not #TSLA share price





Not very cheery I know


Bottom line, many of these smaller companies cannot borrow at these rates, thus will issue equity and dilute shareholders, this stock, just an example, is down 80pct form the highs, small caps etc


Bye bye Richie!



HSI - Hang Seng - are you feeling brave ?


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