Maybe it’s due to a global savings glut. Or perhaps fear continues to lurk in the hearts of overseas investors, inspiring a constant flow into safe-haven Treasuries in spite of firmer economic activity.
GOP moves closer to avert gov’t shutdown, but risks still lurk: The Hill
Turkey may intervene in Syria unless US pulls support for Kurds: Reuters
US industrial production rises a strong 0.9% in December: USA Today
Housing Market Index for US ticks down in Jan after 18yr high: HousingWIre
Fed Beige Book: US economy, inflation rise at modest-to-moderate pace: CBS
Prof. Barry Eichengreen: Fed isn’t prepared for the next recession: Japan Times
China’s official economic data overstate the country’s growth rate: NY Times
Dow Jones Industrial Avg closed above 26,000 for first time: Wall Street Journal
The 2-year Treasury yield is above 2% for the first time in nearly a decade. This rate, which is seen as a key proxy for monetary policy expectations, ticked up to 2.03% on Tuesday (Jan. 16), based on daily data via Treasury.gov. The increase, coupled with a fractional dip in the benchmark 10-year Treasury yield to 2.54%, squeezed the widely followed spread 10-year/2-year spread to 51 basis points, matching the low reached last month that marks the smallest difference since 2007.
GOP plans stopgap funding to keep government open past Saturday: USA Today
US Secretary of State talks of possible war with North Korea: Bloomberg
22 states sue Federal government over repeal of net neutrality: The Hill
World Economy Forum survey: political and economic risks are rising: Reuters
NY Fed Mfg Index: growth ticked lower in Jan but still growing at solid pace: NY Fed
Will higher oil, currency prices force ECB to tighten monetary policy? Bloomberg
Bitcoin and other cryptocurrencies suffer sharp price declines: CNBC
Median 1yr consumer inflation expectations in Dec tick up to 10mo high: NY Fed
The exuberance in the US stock market of late may or may not be irrational, but the party atmosphere in the value corner of equities (companies that are inexpensively priced) is subdued vs. the celebratory surge for growth shares (firms expected to grow at above market rates). Although both measures of US companies in the large-cap space are posting solid gains, the gap in favor of growth has become conspicuously wide lately.
Risk of US government shutdown looms as Jan. 19 deadline approaches: CNN
Turkey’s president warns of attack against US-backed rebels in Syria: Reuters
Oil rises three-year high, supported by global growth and production cuts: Reuters
Wall Street eyes higher inflation in 2018: Bloomberg
Research claims “single actor” lifted Bitcoin to $1000 from $150: TechCrunch
China’s crackdown on Bitcoin accelerates: CNBC
Boeing unveils supersonic plane design for speeds up to Mach 5: Fox
US policy uncertainty is rising: Econobrowser
US equities led most markets higher last week, posting the strongest gain among the major asset classes, based on a set of exchange-traded products. Meanwhile, real estate investment trusts (REITs) in the US suffered the biggest weekly loss, extending a slide for this yield-sensitive sector in the wake of rising Treasury yields.
US immigration deal’s prospects fade in wake of Trump comments: Fox
Thousands flee in Philippines on warnings of imminent volcano eruption: CNN
Hawaii issues false alert about missile attack: New York
Euro reaches three-year high against US dollar: Reuters
US retail spending rises 0.4% in Dec, matching expectations: RTT
US core consumer inflation in Dec rises the most in 11 months: Reuters
Nov business inventories in US post biggest rise since Aug: Dow Jones
China’s retail sales expected to match US spending in 2018: WaPo
The US stock jumped to another record high yesterday, providing more fuel to keep the momentum factor sizzling. All the major factor strategies are posting solid one-year returns these days, but momentum’s trend remains a bullish outlier, based on a set of proxy ETFs.