Sunday, December 23, 2018

Monday Watch

Today's Headlines
  • U.S. Stock Futures Climb After Rout, Yen Steadies. U.S. stock futures rose, erasing earlier losses and the yen pared gains as investors weighed news over the weekend that President Donald Trump has discussed firing Federal Reserve Chairman Jerome Powell as well as the impact of a partial U.S. government shutdown. U.S. Treasury Secretary Steven Mnuchin attempted to assure financial markets that Powell would not be ousted from the central bank following a Bloomberg News report that said Trump has repeatedly discussed removing him. Mnuchin tweeted over the weekend that he had spoken with the president about the matter and quoted Trump as saying he never suggested firing Powell, nor does he think he has the right to do so. Australia’s S&P/ASX 200 Index fell 0.3 percent as of 10:47 a.m. in Sydney. FTSE China A50 Index futures lost 1 percent. Futures contracts on the S&P 500 rose 0.3 percent.  
Zero Hedge:         
Night Trading
  • Asian indices are -.75% to unch. on average.
  • Asia Ex-Japan Investment Grade CDS Index 98.25 +5.25 basis points.
  • Asia Pacific Sovereign CDS Index 11.75 +2.0 basis points.
  • Bloomberg Emerging Markets Currency Index 66.64 +.05%.
  • FTSE 100 futures -.57%.
  • S&P 500 futures +.26%.
  • NASDAQ 100 futures +.15%.

Earnings of Note
Before the Open:
  • None of note
After the Close:
  • None of note
Economic Releases
8:30 am EST
  • The Chicago Fed National Activity Index for November.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The German Import Price Index and $40B 2Y T-Note auction could also impact trading today.
BOTTOM LINE: Asian indices are mostly lower, weighed down by financial and industrial 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 week.

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