Evening Headlines
Bloomberg:
- World Bank Cuts Global Growth. The World Bank cut its forecast for global
growth this year, as an improving U.S. economy and low fuel
prices fail to offset disappointing results from Europe to
China. The world economy will expand 3 percent in 2015, down from
a projection of 3.4 percent in June, according to the lender’s
semiannual Global Economic Prospects report, released today in
Washington. The report adds to signs of a growing disparity between the
U.S. and other major economies while tempering any optimism that a plunge in oil prices will boost output. Risks to the global
recovery are “significant and tilted to the downside,” with
dangers including a spike in financial volatility, intensifying
geopolitical tensions and prolonged stagnation in the euro
region or Japan. “The global economy today is much larger than what it used
to be, so it’s a case of a larger train being pulled by a single
engine, the American one,” World Bank Chief Economist Kaushik Basu told reporters on a conference call. “This does not make
for a rosy outlook for the world.”
- Russia ETF Investors Back Out as Oil Drop Deepens.
The largest exchange-traded fund tracking
Russian stocks is opening the year with the highest redemptions
in a month amid the widest price swings since 2009 as oil
extends its rout and the ruble plummets. Shares in the $1.4 billion
Market Vectors Russia ETF (RSX) ended unchanged at $14.77 after dropping
as much as 2.7 percent. Asset managers pulled $36.9 million from the fund on Monday, the biggest outflow since mid-December,
data compiled by Bloomberg show. The Bloomberg Russia-US Equity Index
of the most-traded Russian stocks fell 1 percent after the
dollar-denominated RTS Index declined to the lowest in four weeks. The
ruble tumbled
3.2 percent against the dollar.
- Asia Stares at Deflation With Rising Debt, Morgan Stanley Says. Asia’s
rapid accumulation of debt in recent years is holding back central
banks from easing monetary policy to fight the risk of deflation,
endangering private investment needed to boost faltering growth, according to Morgan Stanley. Debt to gross domestic product ratio in the region excluding Japan rose to 203 percent in 2013 from 147 percent in 2007, with most of the increase coming from companies, analysts led by Chetan Ahya in Hong Kong wrote in a report yesterday. The ratio is close to or has exceeded 200 percent in seven of 10 nations including China and South Korea, they said.
- China Bulls Cash Out as Stock Rally Overshoots Target.
After watching Chinese stocks surge 37 percent in just three months,
some of the world’s biggest banks are souring on the booming market. Citigroup
Inc. (C) became the latest to cut its outlook on Jan. 12, lowering its
rating to neutral from overweight amid concern valuations are turning
unattractive. The downgrade follows predictions in the last two weeks
from HSBC Holdings Plc (HSBA), Bocom International Holdings Co. and UBS
AG that gains in mainland-listed shares will falter. The Shanghai
Composite Index closed yesterday at 3,235.30, or 7 percent higher than
where analysts
tracked by Bloomberg predict the gauge will be in 12 months, the
biggest gap among global equity measures.
- Japan Passes Record Defense Budget in Bid to Defend Isles. Japan will step up spending on amphibious vehicles and purchase its first unmanned surveillance aircraft as it seeks to bolster defense of remote islands amid a
territorial dispute with China. Prime Minister Shinzo Abe’s cabinet today approved a record
defense budget of 4.98 trillion yen ($42 billion) for the fiscal
year starting April, up 2 percent from the previous year and
just above the previous record of 4.96 trillion yen reached in
2002.
- Most Asian Stocks Drop as Commodities Slump, Yen Extends Advance. Most Asian stocks declined as the yen gained a fourth day against the dollar and commodity prices slumped. About
five shares dropped for every three that rose on the dollar-denominated
MSCI Asia Pacific Index (MXAP), which added 0.1 percent to 137.94 as of
9:53 a.m. in Tokyo. The yen rose 0.3 percent to 117.61 per dollar,
bringing its gain since Jan. 9 to about 1.7 percent. Copper sank to its
lowest since 2009 as Brent
oil fell 1.8 percent to $46.59 a barrel overnight.
- Copper Tumbles Most in Six Years as World Bank Cuts Forecasts. Copper
fell the most in almost six years to
below $5,400 a metric ton as a cut in the World Bank’s global growth
forecast further fueled speculation demand for raw materials won’t be
enough to eliminate a supply glut.
Copper tumbled as much as 8.7 percent in London and fell to
the daily trading limit in Shanghai.
- Oil at $40, and Below, Gaining Traction on Wall Street. Brace for $40-a-barrel oil.
The U.S. benchmark crude price, down more than $60 since June to below
$45 yesterday, is on the way to this next threshold, said Societe
Generale SA and Bank of America Corp. And Goldman Sachs Group Inc. says that West Texas Intermediate
needs to remain near $40 during the first half to deter
investment in new supplies that would add to the glut.
- Oil Drop May Prompt Breitburn Debt Deal on Credit-Line Pinch. Breitburn Energy Partners LP, the oil and
gas producer that canceled a bond deal three months ago, may try
again to raise debt to pay down its $2.5 billion credit line. Tumbling crude prices mean it won’t come cheap. The company is considering tapping the loan market as it
faces a potential reduction of the credit line when its ability
to borrow, based partly on the value of its reserves, is reset
in April, according to Jim Jackson, Breitburn’s chief financial
officer.
- Suncor Cuts Jobs, Spending as Oil Rout Rattles Canada. The
company will spend C$1 billion ($836 million) less this
year than originally forecast in November, following Canadian Natural
Resources Ltd. (CNQ) in revising its budget lower this week. Suncor
also plans to reduce operating expenses by C$600 million to C$800
million in two years, according to a company statement today. “Cost
management has been an ongoing focus, with successful efforts to reduce
both capital and operating costs well underway before the decline in oil
prices,” Steve Williams, Suncor’s chief executive officer, said in the
statement. “In today’s low crude price environment, it’s
essential we accelerate this work.”
- Iron Ore, Coal Forecasts Cut by Citigroup as Energy Costs Sink.
Citigroup Inc. reduced price forecasts for iron ore and coal as cheaper
oil and declines in producers’ currencies combine to cut supply costs,
signaling how the collapse in energy may feed through to other
commodities. Iron ore will average $58 a metric ton in 2015 and $62 a
ton in 2016, down from estimates of $65 for both years, analysts
including Ivan Szpakowski wrote in a report dated today. The
bank’s forecasts for coking coal and thermal coal were also
reduced for the same period, according to the report.
- Gundlach Says U.S. Growth May Disappoint on Oil Decline. Jeffrey Gundlach, co-founder of $64 billion
investment firm DoubleLine Capital, said the U.S. economy may
grow at a slower rate this year than economists expect as
falling oil prices hurt investment and hiring in the energy
industry. While cheaper oil fueled growth in the final months of
2014, the decline has a “sinister” side that will ripple
through the economy and prompt downward revisions to forecasts
by the middle of the year, Gundlach said today in a webcast.
Stock markets may not continue their rally and yields on 10-year
Treasuries may go lower before rising again, he said.
Wall Street Journal:
- Commercial Mortgage-Backed Securities Make Comeback. Some Warn Market Could Be Getting Overheated. A hunt for yield and a gradually improving property market are
bolstering a key engine of U.S. commercial property lending, helping
borrowers to refinance but also reigniting fears the market is getting
overheated. In all, lenders made $94 billion in loans bundled together and sold off
as bonds to investors in 2014, the most since 2007 for the product known
as commercial mortgage-backed securities, according to trade
publication Commercial Mortgage Alert.
- Shunning ObamaCare. Of my company’s 5,453 eligible employees, only 420 actually enrolled. The other 5,033 opted to pay a penalty.
Fox News:
- White House hit for using security as ‘excuse’ for no-show at Paris rally. While the White House points to security concerns as the chief reason
why President Obama skipped the anti-terrorism rally in Paris over the
weekend, some suggest the Secret Service and his advance team could have
made it happen -- if they really tried. Instead, critics say the security explanation is being used as an
“excuse.” Brad Blakeman, who served on the advance team for George W.
Bush’s campaign, said the Secret Service is the “scapegoat” here. “The president can go wherever he wants to go,” Blakeman said.
Zero Hedge:
Business Insider:
Reuters:
- Stryker(SYK) expects strong dollar to hit 2015 profit. Orthopedic device maker Stryker Corp
said on Tuesday it expects the strong U.S. dollar to
have a bigger negative impact on its 2015 earnings than it
previously forecast, shaving about 20 cents from its per-share
profit. The maker of artificial hip and knee joints previously
forecast a currency impact of 10 cents to 12 cents on its 2015
earnings.
- Fed's Kocherlakota 'uneasy' about low longer-term rates. A top U.S. Federal Reserve
official said on Tuesday he was "uneasy" about the low long-term
yields on Treasury bonds because the situation indicates there
are fewer safe assets for investors, and it suggests rates could
be persistently low in the future.
- Investors cut hedge fund bets in January - data. Investors' interest in hedge
funds fell in January as they pulled out more cash than they
invested, data showed on Tuesday, part of an annual rejig of
portfolios. The SS&C GlobeOp Capital Movement Index, which
calculates monthly hedge fund subscriptions minus redemptions,
fell 2.95 percent in January, the sharpest drop in a year. That
compared with a rise of 0.39 percent in December.
Evening Recommendations
Night Trading
- Asian equity indices are -.75% to +.25% on average.
- Asia Ex-Japan Investment Grade CDS Index 119.0 -1.0 basis point.
- Asia Pacific Sovereign CDS Index 75.75 +1.0 basis point.
- NASDAQ 100 futures -.34%.
Morning Preview Links
Earnings of Note
Company/Estimate
Economic Releases
8:30 am EST
- Retail Sales Advance for December are estimated to fall -.1% versus a +.7% gain in November.
- Retail Sales Ex Autos for December are estimated unch. versus a +.5% gain in November.
- Retail Sales Ex Autos and Gas for December are estimated to rise +.5% versus a +.6% gain in November.
- The Import Price Index for December is estimated to fall -2.7% versus a -1.5% decline in November.
10:00 am EST
- Business Inventories for November are estimated to rise +.3% versus a +.2% gain in October.
10:30 am EST
- Bloomberg
consensus estimates call for a weekly crude oil inventory build of
+1,275,000 barrels versus a -3,062,000 barrel decline the prior week.
Gasoline supplies are estimated to rise by +3,562,500 barrels versus an
+8,115,000 barrel gain the prior week. Distillate supplies are estimated
to rise by +2,375,000 barrels versus a +11,205,000 barrel gain the
prior week. Finally, Refinery Utilization is estimated to fall by -.1%
versus a -.5% decline the prior week.
2:00 pm EST
Upcoming Splits
Other Potential Market Movers
- The
Fed's Plosser speaking, EU OMT Ruling, Japan Machine Tool Orders, 30Y
T-Note auction, weekly MBA mortgage applications report, (DPZ) investor
day and the (NRG) investor meeting could also impact trading today.
BOTTOM LINE: Asian indices are mostly lower, weighed down by commodity and industrial shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower. The Portfolio is 25% net long heading into the day.
Broad Equity Market Tone:
- Advance/Decline Line: Lower
- Sector Performance: Almost Every Sector Declining
- Volume: Slightly Above Average
- Market Leading Stocks: Performing In Line
Equity Investor Angst:
- Volatility(VIX) 21.58 +9.85%
- Euro/Yen Carry Return Index 144.77 -1.02%
- Emerging Markets Currency Volatility(VXY) 10.41 -.29%
- S&P 500 Implied Correlation 67.34 +2.38%
- ISE Sentiment Index 63.0 -35.05%
- Total Put/Call .85 -19.05%
Credit Investor Angst:
- North American Investment Grade CDS Index 71.40 +.76%
- America Energy Sector High-Yield CDS Index 733.0 +3.02%
- European Financial Sector CDS Index 67.53 -2.46%
- Western Europe Sovereign Debt CDS Index 27.86 -.07%
- Asia Pacific Sovereign Debt CDS Index 76.23 +2.03%
- Emerging Market CDS Index 399.02 +1.55%
- China Blended Corporate Spread Index 365.05 -.43%
- 2-Year Swap Spread 22.75 unch.
- 3-Month EUR/USD Cross-Currency Basis Swap -15.25 -1.0 basis point
Economic Gauges:
- 3-Month T-Bill Yield .03% +1.0 basis point
- China Import Iron Ore Spot $68.74/Metric Tonne -2.22%
- Citi US Economic Surprise Index 31.0 +.2 point
- Citi Eurozone Economic Surprise Index .2 +.1 point
- Citi Emerging Markets Economic Surprise Index -14.20 +2.0 points
- 10-Year TIPS Spread 1.53 -4.0 basis points
Overseas Futures:
- Nikkei Futures: Indicating -152 open in Japan
- DAX Futures: Indicating -102 open in Germany
Portfolio:
- Slightly Lower: On losses in my retail/medical/biotech/tech sector longs
- Market Exposure: 25% Net Long
Style Underperformer:
Sector Underperformers:
- 1) Hospitals -1.85% 2) Coal -1.25% 3) Oil Tankers -1.22%
Stocks Falling on Unusual Volume:
- HLSS, AIV, ANW, BRX, ASPS, TFM, BGFV, WWW, RESI, GT, DFRG, TIF, FMI, PII, ISRG, BKE, CUDA, BITA, ATHM, NSM, BIS, FCX, SNN, VMI and RESI
Stocks With Unusual Put Option Activity:
- 1) XLV 2) KBH 3) WFC 4) DXJ 5) CSX
Stocks With Most Negative News Mentions:
- 1) WWW 2) JUNO 3) ECOM 4) OCN 5) FIVE
Charts:
Style Outperformer:
Sector Outperformers:
- 1) Airlines +2.32% 2) Gaming +2.31% 3) Homebuilders +2.08%
Stocks Rising on Unusual Volume:
- PCYC, QLGC, IHS, DXCM, SPWR, SEM, ACOR, CLVS and WBMD
Stocks With Unusual Call Option Activity:
- 1) ALTR 2) LVLT 3) DNKN 4) PCL 5) FOXA
Stocks With Most Positive News Mentions:
- 1) BBY 2) CMA 3) CELG 4) AMZN 5) BA
Charts:
Evening Headlines
Bloomberg:
- Charlie Hebdo To Print 3 Million Copies With Muhammad Cover.
Charlie Hebdo will print 3 million copies of a special issue of the
satirical magazine, depicting the Prophet Muhammad on the cover, a week
after an attack at its headquarters left a third of its journalists
dead. Publishers of the weekly magazine will put the copies on
newsstands worldwide in 16 languages on Jan. 14. The issue will
feature a cartoon of Muhammad, crying, on a green background,
holding a board saying “Je suis Charlie” or “I am Charlie.”
Above his image is written “All is Forgiven.”
- Chinese Car Dealers Find Days of ‘Printing Money’ Ending. China’s
car dealers are in open revolt over industry practices that have
slashed profits, threatening growth prospects for companies such as
General Motors Co. and Volkswagen AG in the world’s biggest auto market.
Retailers are banding together under the state-backed China Automobile Dealers Association to demand lower sales targets and
a bigger share of profit from vehicle sales. Bayerische Motoren
Werke AG’s agreement last week to pay 5.1 billion yuan ($820
million) to its dealers has emboldened distributors for VW and
Toyota Motor Corp. to demand similar concessions.
- China’s $300 Billion Errors May Mask Fund Outflows, Goldman Says.
Growing error items in China’s balance of payments may reflect a pickup
in hidden cash transfers from the nation and the central bank will
likely favor a stable yuan to prevent outflows quickening, Goldman Sachs
Group Inc. said. Net errors and omissions, an accounting fix used to
plug the gap when official records of cross-border flows don’t balance,
was negative by more than $300 billion since 2010, Goldman Sachs
economists MK Tang and Maggie Wei wrote in a note
today. That included a record $63 billion in the third quarter
of 2014, a year in which yuan sentiment soured and President Xi
Jinping’s anti-corruption drive widened. “Since such outflows may be harder to contain with
regulations, a continuation of their recent acceleration could
start posing tangible financial stability concerns,” Tang and
Wei wrote in the note.
- Yen’s Top Forecaster Halts Sell Call as Oil Cuts Japan Deficit. The
best forecaster on the yen says he
hasn’t recommended selling the Japanese currency in a few months as
lower oil prices provide solace for Japan’s deteriorating trade balance.
Jens Nordvig, managing director of currency research at Nomura Holdings
Inc., said the 45 percent slump in oil since the end of October will
trim Japan’s trade deficit by around $500
million. The deficit was at 894 billion yen ($7.6 billion) in
November, a 29th straight month of shortfall. “We’ve had a couple years
where we’ve been very focused on
trading the yen from the short side, but we actually haven’t
been short for quite a few months,” Nordvig said in an
interview today. Low “oil prices are positive for Japan’s trade
balance.”
- Japan Boosts Defense Spending to Counter China’s Island Claims.
Japan will increase defense spending for a third straight year as Prime
Minister Shinzo Abe seeks to counter China’s claims to remote islands
in the East China Sea. The budget for the year starting April will be 4.98 trillion yen ($42 billion), up from 4.84 trillion yen in fiscal
2014, according to documents obtained by Bloomberg. Spending on
defense will account for about 5 percent of the national budget,
which is set to be approved by the cabinet tomorrow.
- Short Sellers Bet Korean Shipyards’ Misery to Deepen. South Korean shipbuilders, last year’s
biggest stock-market losers, are the most popular target for short sellers in 2015 as falling crude hurts oil-rig demand.
Bearish wagers used borrowed stock against Hyundai Mipo Dockyard Co.
(010620) rose to 7.3 percent of shares outstanding on Jan. 8, the
highest level on the Kospi index and up from 4.3 percent a year ago,
according to data compiled by Bloomberg and Markit Group Ltd. Short
interest in Daewoo Shipbuilding & Marine Engineering Co. and Hyundai
Heavy Industries Co. (009540) has more than
tripled in the past 12 months.
- Draghi Faces Legal Test on Bond Buys as ECB Readies QE Plan.
European Central Bank President Mario Draghi will get a legal readout
tomorrow on a predecessor to the quantitative easing plan that he’s set
to reveal later this month. An adviser to the EU Court of Justice will
say whether the European Central Bank’s Outright Monetary Transactions
program overstepped the law in a non-binding opinion that may signal
whether QE must also be reined in. “If the opinion is favorable and the conditions attached
are not too restrictive, it would open the way to QE by the ECB
right now,” said Pierre-Henri Conac, a professor of financial-markets law at the University of Luxembourg.
- Global PC Shipments Fall 2.4% in Fourth Quarter, IDC Says. Worldwide personal-computer shipments
dropped 2.4 percent in the fourth quarter as demand from
businesses for new machines waned, market researcher IDC said. The decline was less than the 4.8 percent fall that IDC had
projected for the quarter, the firm said today in a statement.
PC sales totaled 80.8 million for the quarter, down from 82.2
million units a year earlier.
- Asian Stocks Decline as Oil Slumps, Yen Drags Japan Shares Lower.
Asian stocks fell as oil at a 5 1/2 year low weighed on energy
companies and a stronger yen and declines in U.S. equities dragged down
Japanese shares as the market opened after a holiday. The MSCI Asia
Pacific Index (MXAP) slipped 0.4 percent to 137.32 as of 9:01 a.m. in
Tokyo, before markets opened in Hong Kong and China.
- U.A.E. Sticks With Oil Output Boost Even as Prices Drop. The United Arab Emirates will stick with a
plan to increase oil-production capacity to 3.5 million barrels
a day in 2017 even as an oversupply pushed prices to the lowest in more than five years.
“In this time of unstable oil prices, we are showing in Abu Dhabi and
across the country that we remain dedicated to reach our long-term
production goals,” Energy Minister Suhail Al Mazrouei said in a
presentation in Abu Dhabi yesterday. “Our
investments remain there.”
- Fed’s Williams Says June Rate Rise ‘Reasonable’ Amid Labor Gains. Federal
Reserve Bank of San Francisco President John Williams, who will vote on
policy this year, said raising interest rates in June would be a close
call amid “strong momentum” in the labor market and weaker wage gains. “I would expect by June that the argument pro
and con for lifting off rates will be probably a close call” assuming
that inflation doesn’t fall further, Williams said today in a telephone
interview from his San Francisco office. “It’s a reasonable guess.”
Wall Street Journal:
- France Hunts for Attack Accomplices. Prime Minister Warns of Continued Threats After Attack on Charlie Hebdo and Other Violence. France dispatched thousands of police and troops to protect synagogues
and Jewish schools as investigators searched for possible accomplices to
the militants behind last week’s terror attacks and warned of more
threats.
- As Oil Slips Below $50, Canada Digs In for Long Haul. Oil-Sands Operators, Seeing Long-Term Value, Aren’t Likely to Shut Off the Tap Any Time Soon. Even as oil prices settled below $50 a barrel Monday for the first time
in nearly six years, those companies are unlikely to shut off the tap
anytime soon thanks to those huge upfront costs, combined with long-term
break-even points and lengthy production lives. Unlike shale oil, which
requires constant drilling of new wells to maintain output levels, once
an oil-sands site is developed it will produce tens or hundreds of
thousands of barrels a day, steadily, for up to three decades.
Fox News:
- Paris attacks prompt fears France's Muslim 'no-go' zones incubating jihad. (video) In hundreds of French "no-go" zones -- neighborhoods where neither
tourists nor cops dare enter -- poor and alienated Muslims have
intimidated the government into largely ceding authority over them,
prompting fears that the kind of jihad that gave rise to last week's
attack in Paris is festering unchecked.
MarketWatch.com:
CNBC:
- Citadel beats markets with big year. In a year where many hedge funds posted unimpressive returns, Citadel,
the Chicago money-management giant known for its swift movement and
out-of-stock positions, generated more than 23 percent returns in its
equity hedge fund and almost 18 percent in its multi-strategy flagship
funds, Kensington and Wellington, according to someone who reviewed the numbers.
Zero Hedge:
Business Insider:
Reuters:
- Cutting 'patient' from Fed guidance should signal hike near: Lacker. The Federal
Reserve should stop talking about the need for a "patient" interest rate
policy just before it thinks it will begin hiking rates, a top Fed
policymaker said on Monday.
Richmond Federal Bank
President Jeffrey Lacker said in an interview with Reuters that the
Fed's guidance in December that it would be patient with raising rates
harkened back to a strategy employed in 2004.
- German anti-Islamist rally swells after attacks in France. A record 25,000
anti-Islamist protesters marched through the east German city of Dresden
on Monday, many holding banners with anti-immigrant slogans, and held a
minute's silence for the victims of last week's attacks in France. Chancellor Angela Merkel
and other senior German politicians have called for people to stay away
from rallies organised by PEGIDA, or Patriotic Europeans Against the
Islamisation of the West - people who Merkel has said have "hatred in
their hearts".
- United Airlines considers outsourcing jobs at 28 U.S. airports. United Airlines is assessing
whether to outsource jobs at airports around the country in a
cost-cutting effort that could impact some 2,000 workers.
The Chicago-based carrier informed employees Monday that
jobs up for review included baggage handlers and gate and
customer service agents at 28 airports that are not hubs,
ranging from Atlanta to Anchorage. It has yet to make any
decisions.
Evening Recommendations
Night Trading
- Asian equity indices are -.50% to +.50% on average.
- Asia Ex-Japan Investment Grade CDS Index 120.0 +2.0 basis points.
- Asia Pacific Sovereign CDS Index 74.75 +1.0 basis point.
- NASDAQ 100 futures +.14%.
Morning Preview Links
Earnings of Note
Company/Estimate
Economic Releases
9:00 am EST
- The NFIB Small Business Optimism Index for December is estimated to rise to 98.5 versus 98.1 in November.
10:00 am EST
- The IBD/TIPP Economic Optimism Index for January is estimated to rise to 48.7 versus 48.4 in December.
- JOLTS Job Openings for November are estimated to rise to 4850 versus 4834 in October.
2:00 pm EST
- The Monthly Budget Statement for December is estimated at $3.0B.
Upcoming Splits
Other Potential Market Movers
- The
Fed's Kocherlakota speaking, $21B 10Y T-Note auction, UK CPI report, US
weekly retail sales reports, Needham Growth Conference, Deutsche Bank
Auto Conference, BMO Energy Forum, JPMorgan Healthcare Conference and
the (MNST) business update could also impact trading today.
BOTTOM LINE: Asian indices are mostly higher, boosted by consumer and retail shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 25% net long heading into the day.
Broad Equity Market Tone:
- Advance/Decline Line: Lower
- Sector Performance: Most Sectors Declining
- Volume: Slightly Below Average
- Market Leading Stocks: Performing In Line
Equity Investor Angst:
- Volatility(VIX) 19.98 +13.85%
- Euro/Yen Carry Return Index 146.33 -.15%
- Emerging Markets Currency Volatility(VXY) 10.49 +1.45%
- S&P 500 Implied Correlation 65.81 +1.05%
- ISE Sentiment Index 109.0 +43.43%
- Total Put/Call 1.08 +12.5%
Credit Investor Angst:
- North American Investment Grade CDS Index 70.80 +2.08%
- America Energy Sector High-Yield CDS Index 712.0 +1.3%
- European Financial Sector CDS Index 69.47 -1.88%
- Western Europe Sovereign Debt CDS Index 27.88 -4.08%
- Asia Pacific Sovereign Debt CDS Index 74.01 +.22%
- Emerging Market CDS Index 393.16 +3.85%
- China Blended Corporate Spread Index 366.63 +.31%
- 2-Year Swap Spread 22.75 -.75 basis point
- TED Spread 23.75 +.5 basis point
- 3-Month EUR/USD Cross-Currency Basis Swap -14.25 unch.
Economic Gauges:
- 3-Month T-Bill Yield .02% unch.
- Yield Curve 136.0 -4.0 basis points
- China Import Iron Ore Spot $70.30/Metric Tonne -1.24%
- Citi US Economic Surprise Index 30.80 +.1 point
- Citi Eurozone Economic Surprise Index .1 -.7 point
- Citi Emerging Markets Economic Surprise Index -16.20 +.7 point
- 10-Year TIPS Spread 1.57 -5.0 basis points
Overseas Futures:
- Nikkei Futures: Indicating -283 open in Japan
- DAX Futures: Indicating -25 open in Germany
Portfolio:
- Higher: On gains in my biotech/medical sector longs, index hedges and emerging markets shorts
- Market Exposure: 25% Net Long
