White Flag ?
The hot spot remained the accelerating weakness in oil prices which shed 7%. Anecdotally perhaps, D. Trump lashed out at French President E. Macron with a series of ad hominem attacks that are customary in his handling of political foes at home but more unusual in diplomatic usage. “The problem is that Emmanuel suffers from a very low Approval Rating in France, 26%, and an unemployment rate of almost 10%. He was just trying to get onto another subject. By the way, there is no country more Nationalist than France, very proud people-and rightfully so!........” Friendly relations have ups and downs but if Trump ever considered E. Macron as a friend, he is hiding it well. This eructation was likely in response to E. Macron calls for “Patriotism” in his speech on Sunday which is not quite the same as the “Nationalism” D. Trump referred to. Or perhaps it was his cancellation of a commemoration on Sunday due to heavy rain that stirred amusing comments as to whether he was perhaps more mindful of his fragile haircut than of the need to pay tribute. Susceptibility and hypersensitivity are often the common trait of serial offending characters. D. Trump did not like the idea of a common European army either, ignoring the fact that with friends like him, nobody needs enemies anymore. European markets outperformed but they also closed before the US rally petered out helping the Dax to close with a +1.5% gain. They are likely to outperform further on the overnight news. Italian spreads were stable with markets discounting and back pedaling on the risk of populist politics in Rome destabilizing the EU. US 10y Treasury yield (bond yields snapshot) dropped 1bp. HY spread underperformed with spreads driven higher by the sharp fall in oil prices. Oil plunged most in three years, for the 12th consecutive day and by 7.1% after OPEC issued a dire forecast for 2019 demand at a time of steadily rising US production and stockpiles. The liquidation had a smell of capitulation as hedge funds, already roughed up from a rout in tech, remained long crude oil, just weeks after calling for oil to reach USD100.
————- 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! https://www.bentinpartners.ch/subscribe ————- 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