Dalian has opened under pressure again:
As Chinese bonds keep selling:
And authorities are warning that liquidity will remain tight through the Q1 lending season:
- Tight liquidity in the interbank market is expected to continue until early February
- It recommends monetary authorities take steps to prevent the situation from getting worse
- Liquidity is forecast to get even tighter in the next one to two weeks – citing end-of-year regulatory requirements
- A structural imbalance in liquidity is the biggest problem at the moment
- Commercial banks lending to institutions with higher credit ratings which is making it more difficult and more costly for non-bank financial institutions such as brokerages to get needed funding
- The Journal citing unnamed source. Report via MNI
Hence, dirt is being dumped with BHP -1%, RIO -0.6%, FMG -0.2% and WHC flat:
They do look a good short right here.
Big Gas is fading for no reason in particular:
Big Gold has caught a dead cat bid:
But today’s clear winner is Big Debt which is being bid strongly with global counterparts as the yield curve steepens. It has nothing at all to do with local circumstances so is flawed but could run quite a while with the S&P500:
Big Spruik also looks like it wants to run a little with REA leading and MEA dead in the water:
The Trump rally is bust for commodities. Next the wider rally may pull back.
