Daily Comments

China November new yuan loans were strong, CPI was light, and PPI was in line. A survey on Japan Q4 business conditions beat expectations. Asian markets were higher. The Nikkei 225 was up +0.56% and the Shanghai Composite rose 0.98%. European equities followed Asian markets higher early but faded late to finish mixed. The DAX fell -0.23%. Yields on 10-yr. Bunds are back below support at 0.300%, closing at 0.290%. The October JOLTS – Job Openings showed an unexpected decline to 5.996M openings, although the September report was revised higher from 6.093M to 6.117M. The US$ index was almost flat even as yields on 10-Year Notes edged higher to 2.389%. February gold closed down -0.1% to $1,246.90. January crude gained on prospects for demand growth, rising +1.1% to $57.99. Following a steady open, equities firmed slightly, then spent the morning trading in a very tight range. Strength in large-cap technology shares helped keep markets in the black. A little weakness seeped in via the small-cap Russell 2000, holding back the gains in the other averages. At the close, buyers stepped in and markets were mostly higher.


The China November trade surplus widened more than expected on rising exports and imports. Asian markets were higher. The Nikkei 225 was up +1.39% and the Shanghai Composite rose 0.55%. The German October trade surplus was narrower than expected. The EU and the UK announced they had reached a tentative agreement on the 1st phase of Brexit talks. European equities were higher. The DAX was up +0.83%. Yields on 10-yr. Bunds rose to 0.309%. November Nonfarm Payrolls were up +228K, the Unemployment Rate was 4.1%, the Average Hourly Workweek was 34.5 hours, Average Hourly Earning rose +0.2%, and the Workforce Participation Rate was 62.7%. October Wholesale Trade fell -0.5% and the preliminary December Consumer Sentiment fell to 96.8. Baker-Hughes said that the U.S. oil rig count was up 2 to 751. Yields on 10-Year Notes rose to 2.378%. The US$ index was firm. February gold fell -0.4% to $1,248.400. January crude added +1.2% to $57.36. Government funding has been extended 2 weeks. Equities opened with strong gains, then traded sideways through most of the session. At the close, markets were moderately higher.


Asian markets settled mixed. The Nikkei 225 rose +1.45% as technology shares recovered. Meanwhile, the Shanghai Composite fell -0.67%. German October industrial production fell unexpectedly, while Eurozone Q3 GDP was revised higher to +2.6% y/y, the strongest pace of expansion in 6-1/2 years. European equities were mixed. The DAX rose +0.37%. Yields on 10-yr. Bunds keep drifting lower, now down to 0.296%. For November, Challenger reported an increase in announced job cuts to 35K. Initial Claims for 12/01 were 236K. October Consumer Credit rose +$20.5B, well above expectations. Yields on 10-Year Notes was higher at 2.360%. The US$ index was slightly higher. February gold fell -1.0% to $1,253.10. January crude reversed much of yesterday’s slide to close up +1.3% to $56.69, supported by a report that November OPEC output was a 6-month low. Equities got off to a slow start but quickly found their footing and moved to a higher level. With no indication on the government funding which runs out tomorrow and a flood of jobs data also due out tomorrow, markets settled into a tight range. Despite a late wobble, markets closed moderately higher.