Market Summary: The long and the short of it.
U.S. Markets: The equity markets stalled again yesterday following Chinese media comments on President Trump’s speech to the Economic Club of New York. China Global Times said, “Quite a lot of criticisms and complaints about China from President Trump in his latest speech, but hardly anything new. Similar statements of senior U.S. officials have bored people. It seems this U.S. administration really believes a lie repeated a thousand times becomes truth.” The S&P 500 and the New York Composite (NYA) nosedived after the press release, only to be saved with some jawboning from Larry Kudlow and a well-timed headline on further tax cuts. The S&P 500 finished the day at 3091, a gain of +0.16% and the NYA closed out at 13,388, a gain of 0.00%. The recent series of record highs for the S&P 500 is not being matched by the broader market, suggesting the gains should be viewed with a jaundiced eye and treated with caution.
U.S. Treasuries: Having re-opened for trading after yesterday’s Armistice Day closure, bonds were bid across the yield curve driving down interest rates, the two- and 10-year yields at 1.65% and 1.92%, respectively.
There was very little action in the precious metals markets on Tuesday. Gold finished the day at $1457 an ounce and Silver ended the trading day at $16.74 an ounce. Crude Oil (WTI) did very little in the way of any action during Tuesday’s trading session and closed out at $56.73 a barrel.
European markets finished higher today with shares in Germany leading the region. The DAX rose +0.65% (see 2 Year chart above as we close in on early 2018 highs) while London’s FTSE 100 was up +0.50% and France’s CAC 40 climbed +0.44%.
Asian markets finished higher yesterday with shares in Japan leading the region. The Nikkei 225 was up +0.81% while Hong Kong’s Hang Seng jumped+0.52% and China’s Shanghai Composite rose +0.17%.
South & Central American markets finished mixed as of the most recent closing prices. Brazil’s Bovespa led the Mexican IPC lower. They fell -1.51% and -0.24% respectively.
Cryptocurrencies were somewhat volatile during trading on Tuesday but ended the day almost unchanged. Bitcoin slid to $8805 for a minor drop of -0.14%.
The CBOE Volatility Index (VIX) was volatile during trading but finished pretty much where it had started at 12.68 or a drop of -0.08%.