Short recap
Asian stocks mixed despite some speculations about China
getting back on track
EU to open lower with some caution ahead of Flash PMIs
and after day off in US/CA
Volatility staying extremely low (as mentioned
yesterday), no trigger in sight yet (may be Trump before Congress on Feb 28)
Difficult to time as the substantial rise in VIX is
always steep
Oil supported by substantial jump in long
speculative positions from managed accounts reaching record highs
Difficult to imagine what will happen if we experience
sudden unwinding of positions
Seeing battle between OPEC cuts, higher demand from China
vs rising US production
Iron ore higher today as per increased demand for
higher graded steel from China
US homebuilders experiencing shortage of skilled
workers
BHP Billiton reported higher profit on commodities
rally
Warned about risks for metals and iron ore rally in the
short term
HSBC disappointed as it struggles in its core
markets, had a one off write-down, pre-tax profit down 62%
EM and China hitting the results
More and more speculative longs in Rubble sound
like speculative accounts betting on rising oil
10 yr US Trys yield at 2.44%, we may see some
selling pressure as US comes back
2 yr auction ahead of us can be a good gauge
Bunds range bound 164.07/164.94
GE-FR spread was widened again yesterday on Le Pen
advance in polls
But new polls show Macron winning in 2nd round
(this one counts)
Some progress on Greece – bailout auditors coming
to Greece again
But nothing else as EU officials do not want to irritate
EZ public with Greece write off headlines ahead of crucial elections this year
Data
EZ: Composite PMI – expected slightly lower but still
reaffirm the growth
US: Manufacturing PMI – expected higher
Will have FOMC Minutes and some Fed officials speaking
this week but it shouldn’t be that relevant to the market after Yellen last
week
Good luck Champs!
Mr Hawk
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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
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