Short recap
Asian shares under pressure from political risks
Investors seeking refuge in JPY, Gold, US Trys (yield 2.39%) and Bunds (yield 0.34%)
Trump fully supporting NATO
Bill Gross from Janus Capital – yields will rise but to stay low
The 2.60% yield in US 10-yr Trys to be watched
EUR lower on widening spreads in the light of political risks; market is getting nervous as the ECB is out with QE for quite some time but spreads are rising
GE-IT spread to 199 bps
GE-PT spread to 385 bps; if spread rises further, the volatity may turn to EU equity markets
GE-FR spread to 80 bps (last time seen at these level or above back in 2011/12)
FR bonds may experience volatility as 60% is owned by foreigners
French election uncertainity making clouds over EU equities
As we are getting closer to April/May it may be the time to look at EU stocks because they are lagging their US peers on valuation what may create interesting buying opportunities going on Energy stocks – a bit worrysome as the market is priced well above current oil price levels and its outlook; debt burden starting to bite
Oil specs – stronger USD and 9 long-to-1 short futures positioning can be heavy
Gold benefiting from political risks in EU and heading to 1250 level, 1220 now support.
Gold/EUR interesting opportunity – broke to the upside the declining trendline (on lower yields, stronger JPY)
Data
GE: Industrial Production (Dec) – expecting higher number
US: Job Openings & Labor Turnover Survey (Dec) – slightly up
JP: 10-yr Government Bond Yield – stabilized around 0.09-0.10% after hitting 0.115% last week.
BoJ target Bank of France Governor Galhau speaking 1630
ECB: Weidmann speaking at 1635
Asian shares under pressure from political risks
Investors seeking refuge in JPY, Gold, US Trys (yield 2.39%) and Bunds (yield 0.34%)
Trump fully supporting NATO
Bill Gross from Janus Capital – yields will rise but to stay low
The 2.60% yield in US 10-yr Trys to be watched
EUR lower on widening spreads in the light of political risks; market is getting nervous as the ECB is out with QE for quite some time but spreads are rising
GE-IT spread to 199 bps
GE-PT spread to 385 bps; if spread rises further, the volatity may turn to EU equity markets
GE-FR spread to 80 bps (last time seen at these level or above back in 2011/12)
FR bonds may experience volatility as 60% is owned by foreigners
French election uncertainity making clouds over EU equities
As we are getting closer to April/May it may be the time to look at EU stocks because they are lagging their US peers on valuation what may create interesting buying opportunities going on Energy stocks – a bit worrysome as the market is priced well above current oil price levels and its outlook; debt burden starting to bite
Oil specs – stronger USD and 9 long-to-1 short futures positioning can be heavy
Gold benefiting from political risks in EU and heading to 1250 level, 1220 now support.
Gold/EUR interesting opportunity – broke to the upside the declining trendline (on lower yields, stronger JPY)
Data
GE: Industrial Production (Dec) – expecting higher number
US: Job Openings & Labor Turnover Survey (Dec) – slightly up
JP: 10-yr Government Bond Yield – stabilized around 0.09-0.10% after hitting 0.115% last week.
BoJ target Bank of France Governor Galhau speaking 1630
ECB: Weidmann speaking at 1635
Good luck Champs!
Mr Hawk
DISCLAIMER: This material was created for informational
purposes only and represents the Land of Trading team’s view of the past and
current economic and capital market environment. It is not an investment advice
and should not be viewed that way at all, and the creators of this material
cannot be held liable for any potential losses resulting from trading, where despite
this disclaimer someone would consider this material as an investment advice.
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