Animal Spirits Roar Back

Includes: CNY, CROC, CYB, DAUD, DEUR, DGBP, DJPY, DLBR, DRR, ERO, EUFX, EUO, FXA, FXB, FXC, FXCH, FXE, FXY, GBB, JYN, UAUD, UDN, UEUR, UGBP, UJPY, ULE, URR, USDU, UUP, YCL, YCS

 

Marc Chandler, Seeking Alpha

Jan. 9, 2020

 

Summary

 

         Oil prices unwound the earlier knee-jerk gains and were given an extra push by the unexpected build of US crude inventories, according to the EIA.

 

         Consumer prices steadied in China at the end of last year. December's CPI was unchanged from November's 4.5%.

 

         Germany reported a larger-than-expected 1.1% rise in November industrial output, the most in a year and a half.

 

         The light US economic calendar today keeps the focus on tomorrow's employment data.

 

Overview: The S&P 500 recovered from a 10-day low to reach a new record high, which set the tone for the Asia-Pacific and European markets today. The MSCI Asia Pacific Index jumped by the most in a month with the Nikkei's 2% advance leading the way. More broadly, the markets in Taiwan, South Korea, Hong Kong, India, and Thailand all rose more than 1%. Europe's Dow Jones Stoxx 600 was up a milder 0.5%, but its third successive advancing session has seen new record highs. US shares are trading firmer as well. Yields in the Asia-Pacific region were pushed higher by the backing up of yields seen in the US yesterday, but European yields are narrowly mixed, and the US 10-year is little changed near 1.87%. The dollar is building on yesterday's gains against the major currencies, but the risk-on mood is evident in the strength of the emerging market currencies. Except for Eastern and Central Europe, emerging market currencies are mostly higher, led by the nearly 1% rally in the South Korean won. The JPMorgan Emerging Market Currency Index is pushing higher and testing the 200-day moving average. Gold and oil staged big key reversals yesterday. After reaching a peak near $1611 yesterday, gold reversed lower and finished near $1556. Today it saw $1540 before stabilizing. February WTI reached $65.65 before plummeting to almost $59. Oil prices unwound the earlier knee-jerk gains and were given an extra push by the unexpected build of US crude inventories, according to the EIA. It is consolidating around $60 today.

 

Asia-Pacific ...

 

Europe ...

 

America ...

 

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https://seekingalpha.com/article/4315933-animal-spirits-roar-back