Daily Archives: 3rd December 2019

3rd December 2019

Markets Trumped yet again

iTraxx Main

50.3bp, +1.3bp

iTraxx X-Over

230.2bp, +4.8bp

🇩🇪 10 Yr Bund

-0.35%, -7bp

iBoxx Corp IG

B+114.7bp, +0.5bp

iBoxx Corp HY

B+386bp, +8bp

🇺🇸 10 Yr US T-Bond

1.70%, -13bp

🇬🇧 FTSE 100

5510.33, (-5.25%)
🇩🇪 DAX

9632.52, (-3.68%)
🇺🇸 S&P 500

2541.47, (-3.37%)

2020: Downside risks lurk…

We have yet another iteration in the process. Does anyone really care any more? We previously suggested that the Chinese could afford – politically and financially – to play the long game regarding the trade tariff talks. With an election looming, the lack of a decent, encompassing deal between the US and China would possibly eat away into Trump’s self-professed, yet questionable, magic regarding his ability in getting a good deal done. Depending on how it is spun, it may well weigh on his re-election hopes – alongside many other issues, of course.

Well, he surprised in the session, suggesting that it might be better that a trade deal waits until after the US elections (next November)! That, after slapping punitive tariffs on Monday on steel and aluminium imports from Brazil and Argentina – as well as threatening the EU (France in particular) with tariffs, and we are almost back to square one. Add to it the spat with France’s Macron at the NATO summit and it’s a case of all hands back to the pump.

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