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AVFMS's picture

Utterly boring Monday session, worsened by year-end inactivity… Won’t get any better going forward, probably. Fiscal Cliff a cliff-hanger (I know, cheap)… Spain on the heavier side with contingent funding holes still popping up here and there.

"Jingle Bell Rock" (Bunds 1,37% +2; Spain 5,41% +4; Stoxx 2628 unch; EUR 1,317 +30)

Phoenix Capital Research's picture

 

 As I mentioned before, without a doubt 2013 will be a disastrous year for the global economy and for the financial markets. Things could get ugly before then due to any number of issues that are boiling just beneath the surface… but barring any sudden developments, most of the key players will try to hold things together into year end.

 

Marc To Market's picture

There was a lively start to trading as the yen gapped lower in immediate response to new of the LDP's  victory in the weekend elections in Japan.  The greenback traded around JPY84.55, the highest level since April 2011.  The euro traded to about JPY111.30, just below the year's high set in March near JPY111.45.  The Nikkei gapped higher.  

 

However, as the results were largely as expected.  The LDP and its traditional ally, the New Komeito secured a 2/3 majority, which will prevent the upper house, in which the DPJ has a majority, from blocking the new government. 

 

In addition, there is some speculation that the BOJ may stand pat at this week's meeting to enhance its negotiating position with LDP-led government.  Before the weekend, the consensus was for the BOJ to expand its asset purchases plan by JPY5-10 trillion in the face of data pointing to the second consecutive quarterly economic contraction.

Econophile's picture

While pundits argue about the whys and motives of the Sandy Hook shooter, our children are vulnerable to more attacks. Studies show that these mass murders are becoming more common. It seems now that one event inspires (if that is the right word) others to commit heinous acts of violence. Ignore the arguments about gun control, mental health intervention, and the need for the safety of our schools because the powers that be will debate them to no practical end. Here are two suggestions to protect our children NOW.

Marc To Market's picture

 

The outcome of Japan's elections seems to be largely in line with market expectations.  The Liberal Democrat Party won handily.  It appears to have secured a majority of lower chamber of the Diet.  

 

There had been some reports suggesting that it might be able to achieve a super-majority of 2/3, but this does not look to materialized.  However, with its traditional party, the Komeito, together it may. 

 

In any event, this is a strong mandate for the LDP's agenda.  It is a combination of nationalism and what passes for socialism in the neo-liberal age, namely increased government support for the economy via a) massive public spending and 2) unlimited monetary easing.

 

CrownThomas's picture

Who Was Ludwig von Mises

"it then dawned on me that all the improvements in the conditions of the working classes were the result of capitalism. social laws brought about the very opposite of what the legislation was intended to achieve"