• Home /
  • Archive: January 3rd, 2019

Archive

Daily Archives: 3rd January 2019

3rd January 2019

Clobbered… again, of course

MARKET CLOSE:
iTraxx Main

93.1bp, +3.7bp

iTraxx X-Over

373.5bp, +11.5bp

🇩🇪 10 Yr Bund

0.15%, -2bp

iBoxx Corp IG

B+175.8bp, +2.8bp

iBoxx Corp HY

B+544bp, +5.5bp

🇺🇸 10 Yr US T-Bond

2.56%, -10bp

🇬🇧 FTSE 100

6382.41, (-0.64%)
🇩🇪 DAX

12487.36, (-0.45%)
🇺🇸 S&P 500

3112.35, (-0.28%)

Recession fears mounting…

China. That old chestnut. It’s all tumbling down around it, as the importance of her economy reverberates through the global economic system. Apple might have tumbled just now, but swathes of exposed – mainly industrial/luxury groups – have been hit before it. Others will follow. A Brexit (no-deal) timing will be a nail in the coffin for the Eurozone and the establishment needs to wake up. Recession looms.

We feared that the opening quarter, if not most of 2019, would be bad – but as things stand it looks as though it could get quite ugly. We’re not betting against the benchmark 10-year Bund yield falling below 0.10% (currently 0.15%), while that 0% yield level could come quicker than some might think.

Continue reading