Written by Gary
Stocks edged higher today then declined marginally (SPY -0.2%) as the US-China prepared to sign a trade deal and as Middle East tensions remain in motion.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | Phase 1 commodity targets likely more than China can chew: analystsCommodity traders and analysts are struggling to map out how China will reach the eye-popping amounts it is committing to buy from the United States under Phase 1 of their trade deal. |
| Drag from Trump’s trade wars continues to ripple through U.S. economyAs U.S. President Donald Trump and Chinese Vice Premier Liu He prepare to sign a “Phase 1” trade deal, new data show that the costs of Trump’s trade wars are proving more widespread, deeper and longer-lasting than previously believed. |
| Ex-Nissan boss Ghosn says French envoy told him of inside plotFormer Nissan chairman Carlos Ghosn, speaking in Beirut after his dramatic escape from Japanese justice, said on Tuesday that the French ambassador had warned him shortly after his arrest that his own company was plotting against him. |
| Oil edges up after five days of losses ahead of U.S.-China trade pactOil prices edged higher on Tuesday after five days of declines as the United States and China prepared to sign a preliminary trade deal and as Middle East tensions eased. |
| Stocks rally, then ease on U.S.-China trade deal; oil gainsOil prices rose and a gauge of global equity markets hit a new high on Tuesday as investors awaited the signing of a China-U.S. trade deal they hope will spur world economic growth, after the economy in 2019 saw its weakest year since the financial crisis. |
| Wall Street dips from record in ‘Jason Bourne market’U.S. stocks hit intra-day record highs on Tuesday before turning negative following a report that the United States would likely maintain tariffs on Chinese goods until after November’s presidential election. |
| BlackRock vows tougher stance on climate after activist heatBlackRock Chief Executive Larry Fink warned company boards to step up efforts to tackle climate change, a significant shift by the world’s top asset manager as it faces mounting concerns about its fossil fuel investments. |
| Yen gains, yuan weakens on report tariffs on China to stay through U.S. electionChina’s yuan weakened on Tuesday and the Japanese yen reversed earlier losses after a report that the United States will keep tariffs on Chinese goods through the U.S. election hurt risk sentiment. |
| Why the Ukrainian plane tragedy is unlikely to lead to global airspace rulesWhy was the Ukrainian airliner mistakenly shot down near Tehran by Iranian forces last week for the loss of 176 lives even allowed to take off from a country that had just fired missiles towards its neighbour? And why didn’t the airline just delay or cancel the flight? |
| Stocks Slip From Record Highs As Risk Demand Reaches “Historic Turning Point”Stocks Slip From Record Highs As Risk Demand Reaches “Historic Turning Point” The market’s relationship with The Fed explained…
The US market’s price-to-sales ratio has reached a new record high (but it’s different this time)… |
| Fresh Missile Attack Rocks Base North Of Baghdad Where US Troops PresentFresh Missile Attack Rocks Base North Of Baghdad Where US Troops Present It’s currently being described by regional analysts and reporters as a “huge” and “violent” missile attack on a base where US troops are present in Iraq, though no American casualties have been reported so far. Conflicting local accounts suggest that multiple Iraqi personnel have been injured. Reuters has the early but limited details as follows:
A Bloomberg source citing Iraq’s Sumaria says 5 Katyusha rockets targeted the military base Camp Taji which lies north of Baghdad. |
| Watch: Putin Playfully Urges Syria’s Assad To Host Trump Visit While Touring Biblical SiteWatch: Putin Playfully Urges Syria’s Assad To Host Trump Visit While Touring Biblical Site After a video aired on Russian television featuring dialogue between Assad and Putin during the latter’s visit to Damascus last week, The Hill reports of the now viral clip:
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| Repo Shrinkage Begins In February: That’s When Fed Cuts Each Term Repo By $5 BillionRepo Shrinkage Begins In February: That’s When Fed Cuts Each Term Repo By $5 Billion With everyone (grudgingly or otherwise) now admitting that the Fed’s repo and QE4 was responsible for the miraculous surge in stocks since the start of Q4 2019, traders were especially focused on today’s release of the next monthly schedule of repo operations to see if the Fed would, as Powell hinted, start reducing the liquidity injection via repo. And sure enough, that’s precisely what happened when the NY Fed announced that starting February, the term repo, which had been kept constant at a level of $35 billion since mid-December, would be reduced by $5 billion to $30 billion for every new term repo. As shown in the latest schedule below, the New York Fed announced that overnight repos would remain at their prior limit of “at least $120 billion”, but it was the term repos where the Fed confirmed that the massive liquidity glut triggered by JPMorgan the Sept repo crisis would finally being to taper, starting with the Feb 4 two-week term repo, which would decline from $35BN to $30BN. |
| Why being a part of the global value chain matters for IndiaWhy being a part of the global value chain matters for IndiaGlobal value chains create more and better jobs, accelerate economic growth and reduce poverty. |
| Rajiv Bajaj doesn’t expect much from BudgetRajiv Bajaj doesn’t expect much from BudgetThe market is “over-regulated”, which has led to an increase in the two-wheeler prices, Bajaj said. |
| Govt has a Rs 14,000-cr plan for road safetyGovt has a Rs 14,000-cr plan for road safetyThe programme will be driven by a strict incentive-based structure for states delivering on road safety aspects. |
| Upgrade: 2 gorgeous countries with ‘high quality’ health care ” where you can live on less than $2,500 a monthIt can be hard to find affordable living and quality health care in a single retirement locale. |
| Bond Report: Treasury yields fall on slightly weaker economic dataYields on the benchmark 10-year Treasury note fall Tuesday as investors buy bonds following slightly weaker readings on inflation and small-business sentiment. |
| BlackRock’s Fink pressed to take action over words in dumping fossil fuelsBlackRock’s Larry Fink may believe that embracing sustainable investments is key to long-run returns, but he must turn rhetoric into results, say climate advocates. Of BlackRock’s nearly $7 trillion in mutual funds, exchange-traded funds, index-tracking funds and more, some $87 billion can still be linked to fossil fuels through late last year. |
Summary of Economic Releases this Week
Earnings Summary for Today
leading Stock Positions
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