Greetings,
The United States: Strong labor markets have been supporting consumer sentiment.
Additionally, holiday sales on the final Saturday before Christmas hit a new record.
China: China’s sovereign credit default swap spread continues to tighten.
It should be noted that corporate bond defaults hit a record this year.
Commodities: China’s imports of US soybeans climbed last month.
But meeting the trade deal quota will be a tall order.
Equities: Here is the average S&P 500 performance after global economic slowdowns.
Rates: There is a great deal of concern in the media about repo financing challenges going forward. The reality, however, is that the market is now flooded with dollars.
• The Fed’s term repo offering was undersubscribed.
• Foreign banks have more dollars than they know what to do with. Here is the 3-month EUR/USD cross-currency swap basis.
Food for Thought: Average consumer debt added over the holidays:
Edited by Devon Lall
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