Presented by Doug Noland
Tuesday, December 27, 2022
[Yahoo/Bloomberg] Stocks Rise, Dollar Slips Amid China Covid Shift: Markets Wrap
[Yahoo/Bloomberg] Gold Rises on China’s Covid Shift, Signs of Cooler US Inflation
[Yahoo/Bloomberg] Oil Rises as China Loosens Travel Rules, US Battles Winter Freeze
[CNBC] Why 2023 could be another difficult year for the auto industry
[Reuters] Analysis: Dealmakers grapple with unprecedented U.S. challenge to mergers
[Yahoo/Bloomberg] Ukraine Latest: Zelenskiy Sees Gain in East; Austria Warns of Blackout
[Reuters] Moscow’s ultimatum: Ukraine fulfils its proposals or Russian army will decide
[CNN] China to scrap quarantine for inbound travelers in major step toward reopening
[Reuters] China’s industrial profits slump on COVID fallout, next year seen improving
[Yahoo/Bloomberg] Top Japan Bankers See Negative Rates to Stay as BOJ Roils Market
[Reuters] Tesla used car price bubble pops, weighs on new car demand
[Reuters] Brazil’s record 2023 bond bill underscores rising debt burden
[Bloomberg] Chicago’s Shaky Pension Funds Face New Hit From Looming Downturn
[NYT] Retirees Are One Reason the Fed Has Given Up on a Big Worker Rebound
[WSJ] Cash Cushions Dwindle at U.S. Pension Funds
[WSJ] Chinese Rush for Exit as Beijing Ends Zero-Covid and Opens Its Doors
[Financial Times] Year in a word: Inflation
December 23, 2022: Just the Facts
For the Week:
The S&P500 slipped 0.2% (down 19.3% y-t-d), while the Dow increased 0.9% (down 8.6%). The Utilities rallied 1.5% (down 1.8%). The Banks recovered 1.7% (down 24.9%), and the Broker/Dealers gained 1.1% (down 7.5%). The Transports fell 1.3% (down 17.7%). The S&P 400 Midcaps increased 0.8% (down 14.3%), while the small cap Russell 2000 was little changed (down 21.6%). The Nasdaq100 lost 2.3% (down 32.7%). The Semiconductors dropped 3.8% (down 35.7%). The Biotechs dipped 0.6% (down 4.0%). With bullion gaining $5, the HUI gold equities index rallied 4.4% (down 10.5%).
Three-month Treasury bill rates ended the week at 4.1825%. Two-year government yields jumped 14 bps to 4.32% (up 359bps y-t-d). Five-year T-note yields rose 23 bps to 3.86% (up 259bps). Ten-year Treasury yields surged 26 bps to 3.75% (up 224bps). Long bond yields jumped 28 bps to 3.83% (up 192bps). Benchmark Fannie Mae MBS yields surged 30 bps to 5.20% (up 313bps).
Greek 10-year yields jumped 22 bps to 4.51% (up 333bps y-t-d). Italian yields rose 21 bps to 4.50% (up 333bps). Spain’s 10-year yields gained 22 bps to 3.47% (up 291bps). German bund yields surged 25 bps to 2.40% (up 258bps). French yields rose 26 bps to 2.93% (up 273bps). The French to German 10-year bond spread widened about one to 53 bps. U.K. 10-year gilt yields surged 31 bps to 3.64% (up 267bps). U.K.’s FTSE equities index rallied 1.9% (up 1.2% y-t-d).
Japan’s Nikkei Equities Index sank 4.7% (down 8.9% y-t-d). Japanese 10-year “JGB” yields jumped 13 bps to 0.385% (up 31bps y-t-d). France’s CAC40 increased 0.8% (down 9.1%). The German DAX equities index gained 0.3% (down 12.2%). Spain’s IBEX 35 equities index recovered 1.9% (down 5.1%). Italy’s FTSE MIB index increased 0.8% (down 12.7%). EM equities were mixed. Brazil’s Bovespa index rallied 6.7% (down 4.7%), and Mexico’s Bolsa index recovered 1.9% (down 5.1%). South Korea’s Kospi index fell 2.0% (down 22.3%). India’s Sensex equities index dropped 2.4% (up 2.7%). China’s Shanghai Exchange Index sank 3.9% (down 16.3%). Turkey’s Borsa Istanbul National 100 index jumped 4.6% (up 194%). Russia’s MICEX equities index slipped 0.4% (down 43.9%).
Investment-grade bond funds posted outflows of $6.089 billion, and junk bond funds reported negative flows of $3.500 billion (from Lipper). (more…)