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MARKET REPORT
America is now unburdened by what has been<\/p>\n
Muskoka, Lake Joseph, Ontario.
Money is a terrible master but an adept slave<\/p>\n
You were found in clear conditions. But you\u2019re handsome in the fog.<\/p>\n
\u201cVoters seem to forget when politicians \u2018give\u2019 you money, it is the voters\u2019 money they have already taken.\u201d<\/p>\n
Day in Review:
<\/u>
<\/u>Today:
DATA:<\/u>
<\/u>\u2013 Soft UK GDP<\/p>\n
COMPANIES
<\/u>\u2013 Broadcom shares surged 22% in premarket trading after reporting earnings that exceeded expectations and a 220% surge in annual AI revenue. The company also projected robust demand for its AI chips. Market Cap hits $1T<\/p>\n
\u2013 Chipotle (-2.3%) CEO wants to overhaul kitchen with robots
GENERAL:
<\/u>\u2013 Stocks in Iceland hit 19-month HIGH<\/p>\n
\u2013 Cocoa futures hit 8-month high<\/p>\n
\u2013 Euro Bourses close slightly in the Red<\/p>\n
\u2013 Orban says Zelenski turned down Christmas truce
\u2013 Russia launches massive drone and missile attack on Ukraine<\/p>\n
\u2013 Pelosi hospitalized due to fall in Luxembourg<\/p>\n
\u2013 Centrist politician Francois Bayrou has been announced as France\u2019s new prime minister<\/p>\n
\u2013 UK upholds ban on puberty blocking Drugs for minors<\/p>\n
\u2013 US to restrict sale of AI chips to limit China access<\/p>\n
\u2013 Trump weighs options to stop Iran nukes<\/p>\n
\u2013 Dudley expects median neutral rate estimate to be revised up<\/p>\n
\u2013 More BoJ reports suggest skip in Dec<\/p>\n
\u2013 Equities mixed, Treasuries down, Crude up, Dollar flat, Gold down, BTC back over 6 figures
Week Ahead:<\/u>
\u2013 FOMC, BoJ, BoE, PBoC LPR, PMI data, US PCE and Retail Sales
<\/u>
Earnings:
<\/u>\u2013 [WED] MU; [THURS] ACN, CTAS, PAYX, FDX, NKE; [FRI] CCL
<\/u>MAJORS:
DX:
<\/u>\u2013 The Dollar\u00a0was little changed on Friday with DXY trading either side of 107.00 in a 106.72-107.18 range despite the continued move higher in yields this week. The data highlight on Friday was US Import\/Export prices, which were slightly hotter than forecast but ultimately little changed on the month and has little implications for PCE data due 20th Dec, with analysts revising down expectations post PPI on Thursday.<\/p>\n
Next week attention lies on the FOMC rate decision, US Retail Sales and PCE data.<\/p>\n
EURO:<\/u>
\u2013 Outperformed on Friday, with EUR\/USD rising to a peak of 1.0524 from a low of 1.0454 with attention turning to EZ PMI data next week.
There were several ECB speakers on Friday, Villeroy said that more rate cuts are to come, while Kazaks said the direction of rates is clearly down, and the neutral rate is closer to 2% than 3%, noting a significant reduction in rates is still necessary. Escriva said it is logical to have further cuts in coming meetings, while Holzmann said Thursday\u2019s decision was good. Vasle stressed a meeting by meeting, data dependent approach, and Centeno said that gradualism is the most important word.<\/p>\n
POUND:<\/u>
\u2013 Was an underperformer after soft GDP data saw cable test 1.2600 to the downside in later trade but it failed to breach the psychological level. EUR\/GBP ground higher throughout the session in wake of the soft growth data to peak at 0.8319.<\/p>\n
Pound traders\u2019 attention turn to UK jobs and inflation data next week ahead of the BoE on Thursday.<\/p>\n
YEN:<\/u> US: GOLD\/SILVER: BONDS:<\/u> CRYPTO KEEP DOING WHATS WORKING, STOP WHAT ISNT<\/p>\n Best of luck out there. Post of the day: https:\/\/www.youtube.com\/shorts\/eGnp9LYr9RE<\/a><\/p>\n https:\/\/www.youtube.com\/watch?v=VDY6L-w10EY<\/a><\/p>\n https:\/\/www.youtube.com\/watch?v=Y2Efkrrz5q0<\/a><\/p>\n https:\/\/www.youtube.com\/shorts\/5gZUyz_XE1E<\/a><\/p>\n Song of the day:<\/u><\/strong> https:\/\/www.youtube.com\/watch?v=OZdRdelDNxM<\/a><\/p>\n https:\/\/www.youtube.com\/watch?v=qaCdHfSInTM<\/a><\/p>\n https:\/\/www.youtube.com\/watch?v=R8kCMvTYPAM<\/a><\/p>\n Joke of the Day:<\/u><\/strong> https:\/\/www.youtube.com\/shorts\/A0-F1o4Q3I8<\/a><\/p>\n https:\/\/www.youtube.com\/watch?v=WHCNxsFuO8Y<\/a><\/p>\n
Was the clear laggard in a higher UST yield environment while several reports suggest the BoJ is set to skip a rate hike at the meeting next week. Meanwhile, the latest Tankan data saw corporate price expectations unchanged, while the rest of the report showed higher-than-expected optimism among large Japanese manufacturers.\u00a0\u00a0
<\/strong>
EQUITIES:
<\/u>
EUR:
<\/u>\u2013 FTSE 100 -0.14% at 8,300, CAC 40 -0.15% at 7,410, Euro Stoxx 50 +0.04% at 4,967, DAX -0.17% at 20,392
<\/u>\u2013 SPX unch. at 6,051, NDX +0.76% at 21,780, DJI -0.20% at 43,828, RUT -0.60% at 2,347.
Sectors:<\/u>
<\/u>\u2013 Technology +0.54%, Consumer Discretionary +0.42%, Utilities +0.07%, Health UNCH, Consumer Staples -0.20%, Industrials -0.27%, Financials -0.28%, Real Estate -0.58%, Energy -0.63%, Materials -0.79%, Communication Services -1.12%
OIL:
<\/u>\u2013 WTI crude oil futures surged 1.8% on Friday, settling at $71.30 per barrel, marking its highest close since November 7 and a 6% gain for the week, driven by tightening global supplies and rising fuel demand.
The rally was fueled by expectations of sanctions on Russia and Iran, lower interest rate forecasts in the U.S. and Europe, and supportive measures from China\u2019s economy.
The European Union imposed fresh sanctions on Russia\u2019s tanker fleet, while the U.S. is considering similar actions.
In China, crude imports saw an annual increase in November, prompting the International Energy Agency (IEA) to raise its global oil demand outlook. Despite weaker credit demand in China, which led to disappointing bank lending, the IEA predicts an oil surplus for 2025, as non-OPEC+ producers, including the U.S., Argentina, and Brazil, ramp up supply.
Meanwhile, the U.S. Federal Reserve is expected to cut rates, with additional reductions anticipated through 2025.<\/p>\n
<\/u>\u2013 Rising Yields continued to weigh. Next week FOMC positioning.<\/p>\n
YIELD\u00a0\u00a0\u00a0\u00a0 CHANGE
US 1-MO: \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4.318\u00a0\u00a0\u00a0\u00a0 +0.011
US 6-MO: \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4.33\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 +0.012
US 1-YR: \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4.252\u00a0\u00a0\u00a0\u00a0 +0.031
US 5-YR: \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4.252\u00a0\u00a0\u00a0\u00a0 +0.076
US 10-YR:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4.399\u00a0\u00a0\u00a0\u00a0 +0.075
US 30-YR: \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4.602\u00a0\u00a0\u00a0\u00a0 +0.054
TWO\u2019s\/TENS:\u00a0\u00a0\u00a0\u00a0\u00a0 0.15\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 +0.01<\/p>\n
<\/u>\u2013 A lawmaker in the Texas House of Representatives has drafted legislation to create a Bitcoin reserve as part of the state\u2019s treasury.
\u2013 In a bill tentatively named the \u201cTexas Strategic Bitcoin Reserve Act\u201d filed with the state government on Dec. 12, Representative Giovanni\u00a0Capriglione\u00a0proposed\u00a0the comptroller hold Bitcoin as a reserve asset for \u201cat least five years.\u201d<\/p>\n
Let the market come to you<\/p>\n
<\/u><\/strong>https:\/\/www.youtube.com\/shorts\/UZQyQk3AYGA<\/a><\/p>\n
https:\/\/www.youtube.com\/watch?v=CAFpjl_0BPk<\/a><\/p>\n
<\/u>https:\/\/www.youtube.com\/shorts\/AumUTnoBE3Y<\/a><\/p>\n