1. Oil Climbs After Separate Attacks Escalate Middle East Tensions

(Bloomberg) — Oil rose after separate attacks by Iran-backed militants that killed US troops in Jordan and hit a fuel tanker in the Red Sea, a marked escalation of tensions in the Middle East. The White House said Iranian-backed militants killed three service members and wounded 25 others in a drone assault, the first American deaths under enemy attack since Israel and Hamas went to war.

2. China Tightens Securities Lending Rule to Support Stock Market

(Bloomberg) — China will halt the lending of certain shares for short selling from Monday, the securities regulator announced Sunday, in a move to support the country’s slumping stock markets. Strategic investors won’t be allowed to lend out shares during agreed lock-up periods, the Shanghai Stock Exchange and Shenzhen Stock Exchange said in separate releases following the China Securities Regulatory Commission’s statement.

3. Houthi Hit on Russian Fuel Has Oil Traders Recalculating Risks

(Bloomberg) — A missile attack on Friday on a tanker taking Russian fuel through the Gulf of Aden may prove to be a defining moment for an oil market that had previously been somewhat immune to months of Houthi militants’ attacks on merchant trade. Why the calm? Because much of the oil flowing through the Red Sea and Suez Canal came from Russia and — so the theory went it might be safe.

4. Trump’s Cash Stockpile at Risk from $450 Million Dual Verdicts

(Bloomberg) — Donald Trump is facing a pair of major legal verdicts in New York that risk wiping out most — if not all — of the cash the billionaire says he has on hand, a potential blow to the presidential candidate whose persona is tied up with financial success and wealth.

5. Financial News: Top of the flops: Star fund managers who go solo face a rocky ride

Skip to main content Financial News Law Asset Management Investment Banking Crypto Hedge Funds People Newsletters Events Lists Asset Management Top of the flops: Star fund managers who go solo face a rocky ride Those who rise to the top at big firms typically end up sinking to the bottom when they try to set up their own firms By David Ricketts Monday, 29 January 2024 at 05:01 Share Resize Clockwise.

6. Zero Hedge: Goldman Trading Desk: “Theme Of The Week Was An Increased Appetite For Equities Ex Mega Cap Tech”

According to the most comprehensive recap of relevant recent market flows, last week hedge funds were subdued with buying driven almost entirely by short covers in Macro Products while flow in Single Stocks ended flat, as trading activities pointed to increased dispersion and sector rotation.

7. Elon Musk plans to buy AMD chips as Tesla loads up on AI Hardware.

AMD unveiled a lineup called the MI300 and claimed it will be able to run AI software faster than competitors can. Musk mentioned that Tesla plans to invest more than $ 1 billion on Project Dojo by the end of 2024 – Dojo is an in-house supercomputer designed to handle massive amounts of data, including video, which Tesla cars require to create autonomous-driving software.

8. Asia: Credit space traded firmer WoW except the Sovereign space, which was 1-3bps wider.

China IG space was firmer, with spreads 2-10bps tighter, but selective subsectors like Tech/Media/Telco underperformed. China HY space started off a bit wobbly but ended firmer given positive news from government support.

9. The USD will weaken over the course of the year, but it could be a winding ride as is the case since the start of 2024.

Strong growth but fading inflation present conflicting signals for the path for the Fed, and the USD. We expect the USD to remain supported for now but the near-term USD outlook is more balanced following recent rebound.

10. US equities dipped Friday, trimming a weekly advance, as disappointing earnings results from Intel Corp. and mixed economic data weighed on risk assets.

The S&P 500 closed 0.1% lower, while the Nasdaq 100 Index dropped 0.6%. The VIX Index of US stock-market volatility sank, keeping well below its average over the past year. Despite the day’s drop, the S&P 500 still posted its third straight weekly gain. Among individual companies, Intel slumped after the chipmaker gave a weak forecast for first-quarter sales, weighing on competitors including Advanced Micro Devices Inc. and Nvidia Corp. “The market is overbought near-term and really has had no pullback after rallying,” said John Roque at 22V Research.
On Friday, price figures showed that the Federal Reserve’s preferred gauge of underlying inflation rose at its slowest annual pace in roughly three years, bolstering hopes that officials will cut rates soon. But at the same time, a seperate report showed a larger-than-expected jump in personal spending, underscoring the economic strength that may make the Fed hesitant to ease policy.

Leave a Reply

Your email address will not be published. Required fields are marked *