Global Stocks Rise, Dow Flirts With 20,000 As London Reopens; Oil In Longest Winning Streak In 7 Years

Tyler Durden's picture

Global markets continued their levitation with the UK returning from vacation, pushing the MSCI Asia Pacific Index higher for the first time in seven days, while oil headed for the longest winning streak in almost seven years ahead of the promised OPEC production cut which is set to begin in just days. The USDJPY rose for a second day, pushing US equity futures higher and the DJIA is once again teasing with the 20,000 mark, although a race of sorts has emerged between the Dow and bitcoin, as to who can cross key psychological levels first: the Dow and 20,000 or Bitcoin and 1,000.

Despite the full reopening of global markets, trading remains thin across the globe during the last week of the year, with volume on the Topix about 45% below the 30-day average on Wednesday.  European equities fluctuated and Hong Kong stocks rose the most in a month after being closed Monday and Tuesday. More than twice as many shares on Japan’s Topix index rose than declined, even though the Nikkei225 ultimately closed fractionally lower at 19,402. Australian stocks rode a rise in commodities to gain 1 percent. Indonesian shares added 1.9 percent while Shanghai shed 0.3 percent.

Crude climbed for an eighth session before OPEC and other producing nations start reducing output. The yen fell the most among major currencies against the dollar.

"Until data starts to turn negative or the headlines suggest that (U.S. president-elect) Trump's stimulus programme could fall short of expectations, the dips in the dollar will be shallow with the currency aiming for new highs," wrote Kathy Lien, managing director of FX strategy for BK Asset Management. "But at the first sign of bad news there could be massive correction in what is quickly becoming a crowded long dollar trade," Lien added.

The dollar index was steady at 102.930, while the Bloomberg Dollar Spot Index was also little changed, trading near the highest level in more than a decade. The euro inched up 0.2 percent to $1.0474 and sterling dropped again, sliding to a 2 month low of 1.2224.

After crashing the day before, Shanghai zinc and nickel prices were also pulled higher. "There is strong positive sentiment on the outlook for these industrial metals going into 2017, and that's what we're seeing today," said a Perth-based commodities trader. "Let's see if this carries in to the main LME session later on." Iron ore on the Dalian Commodity Exchange extended gains after breaking a 9-day slump the previous day. It was last up 3.5 percent at 569.0 yuan ($81.82) per tonne. The raw material has risen about 170 percent this year, boosted by expectations of Chinese stimulus. It has also benefited from hopes that the incoming Trump Administration will increase infrastructure spending.

In China, the onshore yuan has been trading in a narrower range in the past week, stoking speculation that China is seeking to stabilize its currency as the year ends. The currency was little changed at 6.9557 per dollar; USD/CNY has traded in range of 193 pips since Dec. 21 through today, compared with range of 630 pips from Dec. 14 to 21. The offshore yuan dropped 0.11% to 6.9656; PBOC sets yuan’s fixing 0.05% lower at 6.9495. “The PBOC is trying to actually stabilize the RMB against the dollar,” Wang Tao, UBS head of China economic research, said in a Bloomberg Television interview. “It’s trying to manage expectations among Chinese households and corporates so that you don’t have this very mechanical, one- sided depreciation expectation”

China's s economy showed improvement in 4Q with gains across all industries, according to China Beige Book; revenues, profits, jobs and capital expenditures improved from 3Q while new orders were stable, it says. Meanwhile the tightening in financial conditions continued with overnight CNH hibor surges 8.6%, most since September, to 15.18%

A snapshot of global markets: The Stoxx Europe 600 Index swung between a gain and loss of less than 0.1%. Hong Kong’s Hang Seng Index added 0.8 percent, rebounding from a five-month low, as banks led a rally by Chinese companies. The Hang Seng China Enterprises Index rallied 1.3 percent, the most in a month, and the Shanghai Composite Index lost 0.4 percent. The Jakarta Composite Index headed for the biggest two-day since February, extending Tuesday’s 1.5 percent gain. The Philippine Stock Exchange Index posted the steepest advance since October.

The Topix was flat, with about 10 percent of companies in the benchmark measure trading without the right to receive the next dividend. India’s S&P BSE Sensex rose 0.5 percent, extending Tuesday’s 1.6 percent gain following the recent decline to a five-week low. South Korea’s Kospi index declined 0.9 percent, the most in two weeks. Australia’s S&P/ASX 200 Index was up 1 percent after holidays Monday and Tuesday.

S&P 500 futures rose again, extending monthly gains by another 0.2%.  The Nasdaq Composite Index rose to an all-time high and the Dow Jones Industrial Average approached 20,000.

In rates, 10Y US yields rose on Tuesday to one-week highs in response to the strong domestic data which reinforced hopes for a series of monetary tightening by the Federal Reserve next year.

Market Snapshot

  • S&P 500 futures up 0.2% to 2266
  • Stoxx 600 up less than 0.1% to 361
  • FTSE 100 up 0.3% to 7091
  • DAX down less than 0.1% to 11468
  • German 10Yr yield down 2bps to 0.19%
  • Italian 10Yr yield down 3bps to 1.82%
  • Spanish 10Yr yield down 4bps to 1.35%
  • S&P GSCI Index up 0.3% to 399.2
  • MSCI Asia Pacific up 0.3% to 135
  • Nikkei 225 down less than 0.1% to 19402
  • Hang Seng up 0.8% to 21755
  • Shanghai Composite down 0.4% to 3102
  • S&P/ASX 200 up 1% to 5685
  • US 10-yr yield down less than 1bp to 2.56%
  • Dollar Index up 0.15% to 103.17
  • WTI Crude futures up 0.5% to $54.19
  • Brent Futures up 0.6% to $56.44
  • Gold spot up 0.2% to $1,141
  • Silver spot down 0.5% to $15.89

Top Headline News

  • Delta Cancels $4b Boeing Order Inherited From Northwest: Decision ‘consistent’ with fleet strategy for widebody craft
  • Qualcomm Fined $853 Million by South Korea’s Antitrust Agency: Fair Trade Commission describes ‘monopolistic’ practices
  • Toshiba’s Record Fall Highlights U.S. Nuclear Cost Nightmare: Writedown related to dispute over value of Westinghouse deal
  • Oil Trades Near 17-Mo. High Before Planned OPEC Supply Cuts: Inventories should stabilize as output is trimmed: Del Pino
  • Gold Shakes Off Trump Slump With Third Advance as Year-End Nears: Bullion prices head for best run of advances since Nov.
  • Miners Unearth a Profit Bonanza, Rally Set to Last Into 2017: Rebounding prices end losses that forced debt cuts, mine sales
  • Dynegy Files FERC Mitigation Proposal for Engie Plant Purchase: Asks FERC for expedited approval of mitigation plan

Asian stocks advanced, ending a six-session drop. 10 out of 11 sectors rise in the MSCI Asia Pacific Index with materials, information technology outperforming and consumer staples, consumer discretionary underperforming. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5 percent. Australian stocks rode a rise in commodities to gain 1 percent. Indonesian shares .JKSE added 1.9 percent while Shanghai .SSEC shed 0.3 percent. Japan's Nikkei was basically unchanged. “Gains at the start of the week on Wall Street and the rally in crude oil prices have helped most Asian markets move into black this morning,” said Jingyi Pan, market strategist at IG Asia Pte Ltd. “Nevertheless, we again have the condition of low volume plaguing markets.”

Asia Econ Data

  • Japan Nov. Retail Sales Rise 0.2% M/m; Est. -0.5%
  • Japan Nov. Industrial Production Rises 1.5% M/m; Est. +1.7%
  • Vietnam Dec. Trade Deficit $300M; Est. $400M Deficit
  • Vietnam’s Dec. Consumer Prices Rise 4.74% Y/Y; Est. +4.85%
  • Vietnam 2016 GDP Grows 6.21%, Prime Minister Phuc Says
  • Macau Nov. Visitor Arrivals Unchanged Y/y
  • Macau Nov. Consumer Prices Rise 1.53% Y/y

Asian Top News

  • China Banking Official Urges Cut to Reserve Ratio: People’s Bank of China has held ratio at 17% since February
  • Chinese Insurer to Compensate Bondholders After Cosun’s Default: Zheshang Property’s payments will start from Dec. 28
  • Hitachi Koki Shares Up Most in 16 Years as Parent Eyes Sale: KKR in final stage of talks on $1.3 billion deal, Nikkei says

In Europe, stocks are little changed after trading resumed in U.K. and Ireland after holidays.  11 out of 19 Stoxx 600 sectors drop with real estate, travel & leisure underperforming and basic resources, oil & gas outperforming. 54% of Stoxx 600 members decline, 43% gain. “The political fog remains intense in Europe, resulting in limited visibility as we head into 2017,” HSBC strategists Robert Parkes and Amit Shrivastava write in note. “Investors have to grapple with the uncertainty surrounding the numerous key political events on the horizon. Any one of these has the ability to shock and call into question the future of the whole EU project. But it is not all bad news. The global economy is showing signs of life and we could be finally exiting a multi-year earnings downgrade cycle.”

European Top News

  • BP to Buy Woolworths Australian Gas Stations for $1.3 Billion: U.K. oil company set to acquire 527 retail fuel outlets
  • U.K. Builder Bovis Slumps Most Since October as Production Falls: Bovis will hand over 3,950 to 4,000 homes this year
  • Turkey, Russia Agree on Plan for Syria Truce, Anadolu Reports: Erdogan accuses U.S.-led coalition of aiding IS, Kurds
  • Vestas Secures Wind Turbine Orders in U.S., Honduras: Order for 200 MW of V110-2.0 MW turbine components in U.S.
  • Volkswagen to Hire More Than 1,000 IT Experts in Next 3 Years: From high-tech sectors, gaming industry, research centers
  • Boohoo.com to Acquire Certain Assets of Nasty Gal Inc. for $20m: Further update after seeking U.S. court approval on Jan. 5

In commodities, crude futures jumped 0.4% to $54.10 a barrel, extending Tuesday’s 1.7% climb. Prices are set to recover next year as production cuts help rebalance an oversupplied market, Saudi Arabia’s Energy Minister Khalid Al-Falih said last week. OPEC and 11 nations from outside the group including Russia have agreed to trim about 1.8 million barrels a day from January. Gold was up 0.3 percent at $1,141.71, climbing for a third day from an 11-month low.

In currencies, the yen slipped 0.1 percent to 117.57 per dollar after falling 0.3 percent Tuesday. The Bloomberg Dollar Spot Index was little changed, still trading near the highest level in more than a decade.

US Event Calendar:

  • 8:55am: Redbook weekly sales
  • 10am: Pending home sales MoM, Nov., est. 0.5% (prior 0.1%)
  • 4:30pm: API weekly oil inventories

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Fireman's picture

Fake Newz...Fake "economy"  Happy fake 2017!

BritBob's picture

Falklands Oil

 

 Rockhopper CEO Sam Moody described this as “highly attractive” in the context of the current oil price. The estimated break-even price is US$45/bbl.
The partners have submitted an environmental impact statement and revised draft field development plan to the Falkland Islands government, and discussions are set to continue on a range of operational, fiscal, and regulatory matters.
They have also reached a settlement on an insurance claim relating to costs incurred on the Isobel Deep exploration well during the 2015/16 North Falkland basin exploration campaign. Value is US$90 million (after deductions) on a gross basis. (MercoPress 23.12.16)

What about the Argentinians?

Falklands – Territorial Waters: https://www.academia.edu/10574593/Falklands_Islands_Territorial_Waters

 

All hot air...

Jungle Jim's picture

What about gold? I just want to know about gold. I mean, near-term. I don't care about "one day," "someday," "eventually," "finally," and "ultimately" and all that.

RonnieM's picture

You are right.  There are very few people here who do know where the markets are going, including gold.

 

But there are a bunch of people here on ZH who follow one particular wave analyst and the analyst does make correct calls in the markets, gold included. They show their past charts at https://t.co/LM81DZlPyF

 

Just notice how in the past 6 weeks they went short the NDX, then went long on December 1st. The past charts prove that they know what they are doing. It is very difficult to find any analyst who shows actual past dated charts that prove they made the correct calls. 

RonnieM's picture

I am a financial adviser in London.  Gold has been an easy trade for one analyst in particular.  In fact I think they still have some of their old charts up on their FB page where they called the high in gold years ago when it was over $1900/oz then they went long, but I think they have been short for the past few months.

 

check out the charts at https://t.co/LM81DZlPyF

 

They have been nailing oil for mid to longer term trades as well; and of course they call every turn in equities. I will say that they are more active in the equity markets than they are in the oil or gold markets. They tend to hold their oil and gold positions for months and sometimes even years. Oil they called the high at around $147 US$ and then went long a few years later. 

ErikE's picture

That analyst is truly good. In fact they are the only analsyt I know of who shows at least the past three years of their calls to prove how they get it right.

 

But there are non many investors or traders here. the traders who are here have been perma bears long enough that they are broke and have no money left in their accounts anyway. lol

Traderone's picture

lol, what a bunch of Pricks you guys are.

MexInvest's picture

What? Don't like their charts they show that PROVE that they make the correct market calls?  lol

 

Typical  CNBC is full of all sorts of your types. 

Traderone's picture

Your name has been added to the list, Dickhead.

Traderone's picture

ATTN TYLER(s):  SPAM ACCOUNT DELETION

 

Tyler(s), please delete the following accounts, all part of the "ShepWave" spamming scam infecting many of your threads daily.  One of them posts the link, then usually two others come and offer endorsements.  Perhaps a partial list, I'm sure others won't be hard to find.  Thanks for your help.  Happy holidays.

 

Dr.Carl

Babs.St.Louis

FemDayTrader

wisetrader224

Van G

P Christmas Carole

Irvingm

MexInvest

StevieTexie

ErikE

AliSONY

MikeM54

Billy G

Sonya B59

Chi Juan

John Beau

MexInvest's picture

On the list?   LOL

 

What are you 12?

 

 

Oh my.  That is by far the most classicly hilariously thing I have seen in a long time.  

Seriously, I had no idea that they let 9 year olds with their "lists" come to ZeroHEdge.

 

Too bad you do not know how to read charts yet or you would see that some one is getting the markets right. JUST NOT YOU!!!

 

RonnieM's picture

I almost feel slighted that I am not on the list.

Just showed his post to the analysts in my firm. It made for a great lunch time conversation.

 

You are right. He is losing his tail being overly zealous on the bearish side and has lost everything. Plus it is obvious that he cannot make any good trading decdisions that he is jealous when he sees solid proof that others do make profitable trading decisions. This board is full of a lot of that. 

 

The whole irony is that when the markets do get slammed hard, and they will, he will already be broke. 

Dr.Carl's picture

"Look your worshipfulness..." Princess Leia

 

Thank you almighty traderone

 

This is hilarious.

 

Does he not understand that ZH is a click mill.

 

No wonder he has gone broke and has no money.

LowerSlowerDelaware_LSD's picture

Yeah, they spam for SchlongWave then give themselves thumbs up. I have the following SchlongWave spammers. They all signed up about two weeks ago and, funny, all of their comments are to each other about the "wonders" of SchlongWave. An asshole abusing a decent forum.

John Beau

P Christmas Carole

StevieTexie

ErikE

Irvingm

MexInvest

RonnieM

Van G

MexInvest's picture

Seriously that is the funniest thing I have heard.  No wonder you are not making money in the markets. SERIOUSLY!!! 

 

Focus man and you would make money.  Just sayin...

Twee Surgeon's picture

This is really feeling a lot like the Dot Com crash, I (many) have been waiting for the crash thats coming for years now. I was telling my wife that it was all going to collapse for weeks before it popped, this is going to pop soon or be popped. I dont think they will wait for Trump to get installed, if it is severe enough, they might call it a National Emergency, cancel the wedding until Barry has fixed it.

Zen Xenu's picture

Irrational exuberance redux. The impending crash is likely going to be pretty bad.

MexInvest's picture

Careful guys.  Traderone's mother left him at home alone again today.

 

He is already threatening to put people on "THE LIST".

 

They should have a minimum age to be on ZH of at least 16. I mean "THE LIST"?  That made my day. No it made my week. NO IT MADE MY YEAR! 

 

I hate it when day traders lose all their money and then try to take it out on the rest of us who are making money.