Market Talk December 30th, 2015
Posted on December 30, 2015 by Martin Armstrong
Asia finished a mixed session with gains in Shanghai (+0.25%) and Japan (+0.27%) countered with a small decline in the HSI (-0.53%). For Japan, today was the last trading day for 2015 and in so-being returned a yearly gain of just over 9%.
European core indices fell across the spectrum with losses seen for the DAX (-1.08%), CAC (-0.52%) and finally FTSE (-0.64%). Commodities were being blamed yet again for depressed equity markets but that is assuming we need a reason for each price movement.
Yes, Oil on both sides of the Atlantic lost over 3% today with WTI remaining above the price of Brent. Nat Gas was also weaker reversing much of this weeks gains (currently down 6%).
US stocks fell in thin year end trading at the close of the session with the DOW registering a decline of over 120 points at the close. Earlier in the day New Home Sales fell 0.9% in November but given such poor trading volume dealers were inclined to keep books flat for Year End.
The Bond Market had a quieter day despite the $29bn 7yr Auction. Average yield was awarded at 2.16% with a Bid/cover ratio of 2.34 versus usual average at 2.46. A tighter range was seen across the curve with 5’s the pivot of weakness. The 2yr note fell 2bp (0.21%) 5’s were unchanged at 1.80% with further weakness for 10’s and bonds (30’s) both declining by 1bp (closing 2.30% and 3.04% respectively). Bear flattening could well be the theme for 2016…
Gold saw some renewed selling into year end losing $9 and was last seen at $1059 (-0.80%). Silver also traded heavy down 0.7% at $13.83. A closing for gold tomorrow BELOW 1044 will warn this may get very ugly next year. SIlver is much weaker and a simple closing beneath 14.75 will also warn of new lows are likely in 2016.
The US Dollar Index (DXY) was also stronger but in again light volume flow. Last seen at 98.30 was up 0.15% on the day.
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