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Charging The Camel’s Back...

Risk Off returned with a vengeance yesterday and the S&P and Nasdaq respectively shed 1.4% and 2.2% with global equity markets nursing similar or larger losses, bowing under a trifecta of bad news. A weaker yuan and more weakness in Chinese stocks overnight soured sentiment in the early going. US Treasury Secretary Mnuchin unexpectedly canceling his attendance to the “Davos in desert” Conference, caused more risk aversion as did a further deterioration on the Italian budget negotiations and a border fight between the US President and his Southern neighbors. D. Trump and his closest allies insisted on Tuesday on the need to preserve Saudi Arabia as a key US ally amidst international indignation and the ignition of a political storm at home following some unequivocal (and gruesome) evidence that dissident journalist Jamal Khashoggi was tortured, killed and dismembered by an execution squad of 15 people, some of whom close advisers to Crown Prince MBS. The Economist recalled yesterday that D. Trump is “counting on the Saudis to hold oil prices steady next month by maintaining global supply, as America hits Iran, their shared enemy, with new sanctions that aim to cut off its oil exports.” A “Profanity-Laced" Shouting Match was said to have Erupted Between Kelly and Bolton outside the oval office. More evidence that the wind might be turning was provided by Vice President M. Pence who said “If a journalist in particular lost their life at the hands of violence, that's an affront to the free and independent press around the world". "And there will be consequences." Europe faced a further market impact of the likely rejection of the Italian budget which sent the Italy/Bund spread sharply higher as well. M. Draghi insisted on the need not to question EU rules now. At about the same time.... the Mexican peso got hit with the US President raging about issues at the Southern border that he threatened to close despite the just renegotiated free trade agreement. “The assault on our country at our Southern Border, including the Criminal elements and DRUGS pouring in, is far more important to me, as President, than Trade or the USMCA. ..., D. Trump tweeted. ————- This is a delayed and abbreviated version of our premium subscription-based report sent by email to our subscribers every day prior to Asian Markets Closing by 5AM CET time. For a timely and detailed update on global markets, a comprehensive suite of market reports and a briefing of our tactical model portfolios positioning, consider our premium research. Discounts may apply for all private (USD500/year) and professional (USD2’000/year) subscription plans. We help you know when to run and when to sit by tracking all established or developing trends on all major asset classes and by flagging all statistically meaningful market breakouts or trend breaches. To join our 2 weeks free trial, simply click the link below. You won’t regret it! ————- Important Disclaimer: © Copyright by BentinPartner llc. This blog is not intended as a recommendation, an offer or solicitation for the purchase or sale of any security or underlying asset referenced herein or investment advice. Investors should seek financial advice regarding the suitability of any investment strategy based on their objectives, financial situation, investment horizon and particular needs. This blog does not include information tailored to any particular investor. It has been prepared without any regard to the specific investment objectives, financial situation or particular needs of any person who receives this report. Accordingly, the opinions discussed in this blog may not be suitable for all investors. You should not consider any of the content in this report as legal, tax or financial advice. The data and analysis contained herein are provided "as is" and without warranty of any kind. BentinPartner llc, its employees, or any third party shall not have any liability for any loss sustained by anyone who has relied on the information contained in any publication published by BentinPartner llc. The content and views expressed in this report represents the opinions of Marc Bentin and should not be construed as guarantee of performance with respect to any referenced sector. We remind you that past performance is not necessarily indicative of future results. Although BentinPartner llc believes the information and content included in this report have been obtained from sources considered reliable, no representation or warranty, express or implied, is provided in relation to the accuracy, completeness or reliability of such information. This blog is also not intended to be a complete statement or summary of the industries, markets or developments referred to in the blog. #DollarIndex @federalreserve #ForexMarket #ForexNews #USD #USTreasuries #TradeWars #Markets 

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