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10Jan2018 Pre-Market Commentary: Wall Street To Open Lower On Report China May Slow US Bond Purchases, WTI Crude Higher In The Mid 63 Handle, US Dollar Slides Sharply

Written by Gary

US stock market index futures are down moderately (SPY -0.4%), spooked by a report that China is considering slowing or halting purchases of US government debt.

Here is the current market situation from CNN Money

European markets are mixed. The FTSE 100 is higher by 0.13%, while the DAX is leading the CAC 40 lower. They are down 0.93% and 0.45% respectively.

What Is Moving the Markets

Here are the headlines moving the markets.

Bond yields hit multi-month highs on report China may slow U.S. bond purchases

LONDON (Reuters) - Major government bond yields hit multi-month highs on Wednesday, extending earlier gains on a report that Chinese officials have recommended slowing or halting purchases of U.S. government bonds.

Exclusive: Saudi Aramco working to raise cheap loans before IPO - banking sources

DUBAI (Reuters) - Saudi Aramco is working to secure billions of dollars in cheap loans from banks seeking to strengthen their ties with the oil giant before its stock listing, banking and export credit agency (ECA) sources said.

Microsoft says security patches slowing down PCs, servers

(Reuters) - Microsoft Corp said on Tuesday that software patches released to guard against microchip security threats slowed down some personal computers and servers, with systems running on older Intel Corp processors seeing a noticeable decrease in performance.

Senator wants Apple to answer questions on slowing iPhones

WASHINGTON (Reuters) - The chairman of a U.S. Senate committee overseeing business issues asked Apple Inc to answer questions about its disclosure that it slowed older iPhones with flagging batteries, according to a letter seen by Reuters on Wednesday.

Berkshire promotes potential Buffett successors Abel, Jain

(Reuters) - Berkshire Hathaway Inc on Wednesday promoted two of its top executives, Gregory Abel and Ajit Jain, cementing their widely viewed status as potential successors to Warren Buffett as the conglomerate's chief executive.

Oil prices hit fresh highs, but worries grow of overheated market

LONDON (Reuters) - Crude oil prices hit new multi-year highs on Wednesday as OPEC-led production cuts and healthy demand helped to balance the market, but analysts warned of possible overheating.

Futures sink on report China may slow U.S. bond purchases

(Reuters) - U.S. stock market futures pointed to a 100 point fall for the Dow Jones Industrial Average on Wednesday, spooked by a report that China is considering slowing or halting purchases of U.S. government debt.

Airbus-China contract for 184 A320 jets to be finalized soon: France's Macron

BEIJING (Reuters) - French President Emmanuel Macron said a contract with China for 184 Airbus A320 narrow-body jets would be finalized soon and that his country also had ambitions to sell A350 and A380 planes to China in coming weeks or months.

Global air freight demand on track for a seven-year high: IATA

(Reuters) - Demand for global air freight, measured in freight tonne kilometers, rose 8.8 percent in November, compared with a year earlier, the International Air Transport Association (IATA) said on Wednesday.

Bill Blain: "This Is The Moment We've Been Waiting For!"

Submitted by Bill Blain of Mint Partners

US Bonds hit 2.59% - this is the moment we've been waiting for! Normalisation and what it means for markets! In Bonds Lies The Truth!

- "Wisdom is one of the few things that looks bigger the further away it is......"

US 10 year Treasury hits 2.59%.

In Bond Markets lies the truth. Leaving aside the false-start blips early last year and in 13/14, the current rise in rates looks the clearest chart signal rates are normalising since before the crisis. Is the Bear Break above 2.50% in US rates the signal we've been waiting for?


Big names on the tapes are sagely confirming it's the beginning of the bond bear market! The End of Days!

Predictions say the 10-year bond will hit anywhere between 3-3.5% in the next 12 months. Some folk say the Japanese are to blame, while others are panicking about a bond debacle leading to a slew of defaults as sovereigns struggle to launch their front-loaded 2018 funding plans. (Some $65 bln of new government funding due this week!). Others are looking for the hi-yield bond markets to melt-down. There are some saying buy Financials as higher rates are great for their margins, while doomsters say dump tech stocks.

What does it all really mean?

Ladies and Gentlemen - welco ...

Trump Attorney Sues Fusion GPS, BuzzFeed For Dossier Defamation

A fourth individual has filed a lawsuit against opposition research firm Fusion GPS and Buzzfeed over the infamous unverified "Trump-Russia" dossier, Bloomberg reported Tuesday.


Michael Cohen (Mark Wilson/Getty Images)

Donald' Trump's personal attorney, Michael Cohen, filed suit against the two companies involved in the creation and distribution of the salacious 34-page dossier, which has been a key focus of Congressional inquiries into the FBI conduct during the 2016 election - and in particular, whether it was used to launch a counterintelligence investigation against Mr. Trump.

The dossier contains unverified claims that Cohen and Trump had suspicious connections with Russian figures. Most other U.S. news organizations declined to publish the document because many of its claims -- some of them salacious -- havent been substantiated.

It will be proven that I had no involvement in this Russian collusion conspiracy, Cohen said in an interview on Tuesday. My name was included only because of my proximity to the president. -Bloomberg

Cohen is mentioned in the dossier 15 times, though he told Bloomberg that he and the President "don't talk about" the Russia investigations, adding "Why waste time talking abou ...

"It Looked Like A Battlefield" - Photos Show California Mudslides' Devastating Aftermath

California just can't catch a break.

After wildfires - including the largest blaze in California history - tore through Southern California last month, causing billions of dollars in property damage, heavy rains triggered mudslides in some of the areas hardest-hit by the fires - including Montecito in Santa Barbara county, where the most deaths were reported.

The storm may be over, but the hunt for survivors isn't. So far, 13 people have been confirmed dead, while 25 more were injured and another 50 had to be rescued. But those numbers could rise as the search is deepened and expanded Wednesday, with a major search-and-rescue team arriving from nearby Los Angeles County and help from the Coast Guard and National Guard along with law enforcement, according to the Associated Press.


And as the search for victims ramps up, more photos over the devastation wrought by the mudslides are beginning to emerge.

The mudslides took thousands of Californians by surprise.It was unleashed in the dead of night by flash flooding in the steep, fire-scarred Santa Ynez Mountains. As the

Markets Turmoil On China Treasury Purchase Halt News

It was a relatively quiet session until a little after 5am ET when all early-morning market moves were superseded by aggressive cross-asset reaction (as Bloomberg puts it) - largely in the form of dumping anything US-linked - to a Bloomberg report that China is reconsidering its UST holdings. The dollar, US equity futures and US Treasurys all sold off on the report, while spot gold spiked higher.


E-minis tumbled immediately on the news, suffering their first sharp drop of the new year.


The dollar pared its weekly gains, and is back to a 92.00 level, as the UST curve steepens while the yen extends a rally on growing speculation the Bank of Japan may taper its unprecedented monetary easing, a process which was unveiled on Monday night.

Real News on Fake Data in China

Another big Chinese province has admitted to falsifying economic data. That doesn't mean all Chinese economic data is useless. It does mean investors need to educate themselves on where to look, or risk missing big the boat on key shifts in global markets as China's heft grows.

Retail Apocalypse Delayed

Retailers' cheery holiday reports don't eliminate their serious challenges.

Trump Gets a Reality Check on Deregulation

The impetus behind the Federal Energy Regulatory Commission's move to quash a move that would have kept some struggling coal and nuclear plants running may have been the opposition from the coalition of natural gas, oil and alternative-energy producers

Howard Gold's No-Nonsense Investing: Here are the 3 things that could stop the stock market in 2018

Inflation, politics or war could derail this runaway train, writes Howard Gold.

London Markets: FTSE 100 circles record high, as banks rise but home builders drop

U.K. blue-chip stocks clung close to record highs Wednesday, as bank shares rose while those of home builders lost ground.

Tim Mullaney: Fattening 401(k) matches is how to make America great again

Visa is showing America how to do tax reform right.

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