Jan 30, 2017 - Market Update

Short recap

Asian stocks and US futures lower on Trump’s immigration restrictions

EU markets to open lower

Allianz eyeing Australia’s QBE Insurance as a takeover target

Italy – issuing new bonds (EUR 9 bln) today, watch for spreads with Bunds to widen or not

US economy slowed as we saw wider trade gap due to a drop in soybean exports but steady consumer spending and rise in business investments to support the outlook

Gold had poor performance despite weaker USD

Equities moving higher but more noise to come in the short term

VIX printing new five year lows creating divergence between equities and other asset classes

Commitments of Traders (COT) as of Jan 24:

EUR – net short positions down to 4-month low on USD selling

Bonds – funds going long for a second week, while being short stocks – are they getting ready for a risk off market correction?

WTI – new record longs

Commodities in general – new longs, highest since 2014

  

Data

Trump euphoria fading from the market this week as we have busy data calendar US/Non US

Eurozone Business Climate Indicator (Dec) to reach new highs

US consumer spending growth (Dec) to accelarateprojected to accelerate

US Home Sales (Dec) to suffer from higher prices and low inventories Wednesday FOMCFriday US NFPsGood luck Champs!
 Mr Hawk
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