China

China

Gold Pops, USDJPY Drops After China Fixes Yuan At Record Low

After 8 straight days up, ripping 8 handles higher, USDJPY is sliding in early Asian trading, back to a 108.00 handle after China fixed the Yuan at an all-time record low. Gold is also rising for the first time after 6 straight down days.

Saudi Arabia Warns Trump Not To Block Oil Imports

Saudi Arabia's first attempt at engaging with Donald Trump amounts to what is effectively a thinly veiled threat wrapped as a warning. As the FT reports, "Saudi Arabia has warned Donald Trump that the incoming US president will risk the health of his country’s economy if he acts on his election promises to block oil imports."

A Trump Doctrine - "America First"

The opportunity is at hand for Trump to reconfigure U.S. foreign policy to the world we now inhabit, and to the vital interests of the United States. The ideal time for such a declaration, a Trump Doctrine, is when the president-elect presents his secretaries of state and defense.

Oil Surges To 'Algiers' Lows After Obama Statement & Well-Timed OPEC Headline

Just as Morgan Stanley warned, be careful getting too bearish into the OPEC meeting as OPEC's ability to engineer a short-squeeze (via well-placed but meaningless headlines) trumps any dismal fundamentals. Sure enough, WTI is surging by the most in 7 weeks to pre-Algiers levels on spurious headlines today, which builds on a reversal yesterday that started as President Obama discussed the Iran Deal.

China Ridicules Obama's Last Foreign Tour: "Washington's Leadership In Global Affairs Has Decayed"

"The victory of Trump, who swore to "make America great again" and has been supported by nationalists and skeptics of globalization, reflects an increasing trend of isolation in U.S. society...  Against such a backdrop, Obama's conciliatory overseas trip is doomed to be fruitless, and will only intensify the strategic uncertainty of the U.S. allies, instead of reassuring them."

GoldCore's picture

The recent sharp gold price fall is again causing jitters among some investors, who forget that gold remains more than 14% higher in dollar terms, 16.5% higher in euro terms and 36% higher in sterling terms year to date. Thus, outperforming most stock market indices so far this year.

Frontrunning: November 15

  • Biggest Global Bond Rout Since 2003 Pauses (BBG)
  • Oil prices jump 3 percent on hopes of OPEC output cut (Reuters)
  • Italy polls get worse for Renzi as referendum nears (Reuters)
  • Trump will get wake-up call when he takes office, Obama says (Reuters)
  • With Priebus, Ryan’s Speakership Has Direct Channel to Trump (BBG)
  • Supreme Court now in Trump’s hands (The Hill)

Bond Bloodbath Becomes Buying-Panic As Treasury Yields Tumble Most Since June

After 3 days of carnage in US Treasuries, pushing longer-dated bond yields notably above US equity dividend yield - and following both Citi and Goldman reports that Trumponomics may be less inflationary than expected (and the yield surge is tightening financial conditions) drastically, longer-dated bond yields are dropping notably in the early Asia session. 10Y yields are down 8bps - the most since June as 30Y drops back below 3.00%.

China: Trump's First Crisis?

There is a growing possibility that China will be at the epicentre of President-elect Trump’s first crisis, triggered by concerns over the potential impact of protectionist measures on China’s trade surplus, which currently supports the increasingly fragile financing chains supporting corporate debt that the IMF estimates at around 155% of GDP.