Nov 13. Further signs of slowdown
–Stocks were smoked on Monday with the Dow down 600 points, SPX and XLF (Financial ETF) were both down 2%. AAPL plunged 5% and GS nosedived 7.5%. Yields pushed lower. Though it was a bank holiday, according to futures prices at settlement, the ten year yield was down around 3.6 bps to 315.3. The eurodollar strip from reds though golds was up 3 to 3.25 bps. Red/green eurodollar pack spread fell 0.25 to close -3.5, a new monthly low. The eurodollar strip continues to forecast a slow economy in 2020, with EDZ19/EDZ20 just holding at zero, and one-year spreads just behind at negative levels.
–Oil has fallen 11 sessions straight in a breathtaking decline. As of this writing CLZ -1.33 at 58.60.
–Reuters reports that China’s total social financing is slowing, with yuan loans extended in October at 697 billion yuan vs expectations of 862b. From the article: “…growth of China’s outstanding total social financing slowed to 10.2% from a year earlier, again an all-time low, central bank data showed.”
–ECB’s Praet says euro area economy still needs support from the ECB [isn’t Italy trying to provide fiscal support with the budget?]
–NFIB Small Business Optimism this morning. CPI is released tomorrow and Powell will be at the Dallas Fed: ‘Robert Kaplan President and CEO of the Dallas Fed will discuss national and global economic issues with Jerome Powell…” Event at 5:00 EST on Wednesday.
