Monday, January 5, 2015

Markets Report ( January 5 , 2015 ) - Around the financial horn - oil , bonds , stocks and currencies..... Some items of note from today !

Oil in focus....





Late day tweets.....





analysts at "see a growing risk of WTI hitting $35 a barrel in the near-term" and at $40












This is about to get worse - US Steel cites low oil prices for idling Ohio, Texas plants and laying off 756 workers













analysts at see 55m barrels in floating storage by end Q2 as contango makes stockpiling workable

















API Crude Inventories -4000K, Last +760K, but Distillate inventories +9100K, Last 313K



Canada Heavy Oil Drops Below $35 As Rig Count Hits Record Low For January 









Early morning tweets....

















What a half year its been for oil... WTI falls below $50 a barrel











Chart: Getting numerous questions on whether these levels on crude oil will hold. Some are jumping in here. Thoughts?









Chart: Brent crude futures down 5%, below $53.5/bbl -










Chart: WTI crude futures dip below $51/bbl; down almost 4% this morning -





Smallest OPEC member cut its 2015 fiscal budget by 4% on Mon due to falling oil. Budget assumes avg oil price of $79.70/bbl this yr









"We couldn't find shampoo, so we washed our hair with soap. Now there's not even soap."






Oilfield Writedowns Loom as Market Collapse Guts Drilling Values






Bond markets....








Record low yields (not exhaustive list): Japan, Germany, Austria, Belgium, Netherlands, Finland, France



Japan's 20-year yield falls below 1%:






5yr default probability rises >32%, highest since 2009 as Ruble weakens beyond 61 per Dollar.







The global continues. German 10yr yields falls to fresh life-time low, 10yr US ylds drops briefly <2%










Default ahoy? Ukrainian government bonds tumble to new lows








10-y US Treasury yield dips below 2%. Aside from October "flash crash", lowest since 2013.








JAPAN’S 10-YEAR YIELD FALLS TO RECORD 0.295%.








The average 10-year bond yields of the G3 countries below 1%, probably for first time ever says Citi.





Euro crisis is creating a lack of safe assets in the euro zone, driving down yields on Bunds. No relief on this front in sight



Stocks......




Arab bourses battered again as oil slides











At least one bubble is still working: SHANGHAI COMPOSITE RISES 0.8% TO HIGHEST LEVEL SINCE AUG. 2009




CHINA SAID TO ACCELERATE $1T IN 2015 PROJECTS TO BOOST GROWTH. No rate cuts





Et Tu China? *CHINA'S SHANGHAI COMPOSITE INDEX FALLS 1.2% TO 3,311.94 AT OPEN







Citi: The Dax goes splat as a sense of reality is dawning. is in deep trouble; is looming.





JPM: exposures for European banks limited, mostly concentrated w/ French & German banks. Main risk contagion


Currencies...






Specs increase their bet vs . Net short positions extended by 3.7% to $23.1bn or 152,219 contracts as of Dec30.






": * Euro falls sharply in Asia, quoted as low as $1.18605 and currently around $1.1911 - RTRS"




Venezuela Will Implement Managed FX Devaluation In Q1 -- EurAsia






Euro hits 9yr low against USD after reports that German officials believe Euro wouldn't suffer too much if Greece exited Euro ^JR