The Daily Shot Brief – November 26th, 2019

Greetings,   The United States: Economists remain concerned about slowing business investment.   Europe: M&A has picked up momentum.   China: This chart shows Chinese state enterprises’ (black) and private firms’ (orange) ratio of cash to short-term debt.   Equities: March S&P 500 put options outstanding keep climbing. (Put options are the right, but not …

The Daily Shot Brief – November 25th, 2019

Greetings,   The United States: The U. Michigan consumer sentiment index is recovering from the August slump. Gallup’s economic confidence index also shows improvement.   The Eurozone: The Markit PMI report showed potential signs of stabilization in the Eurozone’s factory sector. However, service-sector growth continues to slow.   China: According to Gavekal, Chinese cities have …

The Daily Shot Brief – November 21th, 2019

Greetings,   The United States: The map below shows the changes in year-to-date exports to China relative to 2018.   Europe: Here, we have home price appreciation vs. mortgage lending growth by country.   Asia-Pacific: Hong Kong’s stock market is under pressure again. Despite the uncertainty, mainland China investors have been piling into Hong Kong’s …

The Daily Shot Brief – November 19th, 2019

Greetings,   Equities: US stock market volatility continues to moderate amid signs of investor complacency. –┬áThe S&P 500 daily trading range:   – Speculative accounts are pressing their short VIX bets. (VIX is a measure of the market’s expectations for volatility) Source: @AndreasSteno; Read full article  Additionally, the S&P 500 climbed last week, but the …

The Daily Shot Brief – November 18th, 2019

Greetings,   United States: Last week’s softer economic data sent the Citi Economic Surprise index into negative territory.   Asia-Pacific: According to Natixis, Japanese banks have survived without passing on negative interest rates to their clients. To maintain profitability, they boosted their commissions by selling mutual funds and doubled their share of overseas loans and …

The Daily Shot Brief – November 15th, 2019

Greetings,   Rates: The Fed’s balance sheet normalization (quantitative tightening) lasted about 21 months. Some 40% of this reduction has been reversed in just over two months.   Credit: The ratio of high-yield (HY) to investment-grade (IG) spreads is climbing. It tells us that HY debt is underperforming IG on a spread basis.   Equities: …