Dec 14. Financials weak globally.

–US stock indexes are weaker overnight, with most of the blame attributed to weak data out of China and Europe.  With the ECB halting bond purchases, one commentator said ‘Draghi is tightening policy into a downturn’.  Even before this morning’s sell off, financial shares traded weak yesterday, with several large names making new lows: Wells (WFC), US Bank (USB), BofA (BAC).  The financial etf XLF is not only at a new low settle for the year, it’s getting close to the price at the beginning of 2017.  Germany is helping with the combination of Deutsche and Commerzbank.  Like tying an anchor to an anvil.

–In spite of weakness in equities, there was not much of a bid for fixed income as the market digests this week’s auctions.  Vol hit across the curve as Dec midcurves expire today.  As of this writing EDZ9 is threatening the 9712.5 strike (current 9711) while EDZ0 and EDZ1 are nearing the 9725 strikes (9721 and 9723).  The dollar is stronger with EUR just under 1.13 and poised to close the year at a new low. –Today’s news includes Retail Sales expected +0.1, ex-auto and gas +0.4. 

Posted on December 14, 2018 at 5:10 am by alexmanzara · Permalink
In: Eurodollar Options

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