FRIDAY 1/2/15; Global PMI's; US Markets Reopen; First Trading Day of 2015; ISM Mfg Index; German Bund Record Low Yield 0.493%; German 5-Year Yield Slips Negative; US Dollar Index Above 91 at 9-Year High; Euro 1.20 at 4-1/2 Year Low

Japan markets are closed until next week. Ditto China, Thailand and Philippines markets. The HSI gains +0.8% led by banks and property companies. Trading is on thin volume. Gambling stocks are weak due to the steady downtrend in Macau revenues. The SPASX200 gains +0.5% boosted by strong financials and a recovery in oil, energy and mining stocks. Aussie dollar 0.8139. Analysts studying recent RBA comments and weighing the China slowdown are projecting the Aussie dollar to drop to a seven handle (under 0.80).

The KOSPI gains +0.6%. Steel manufacturer Posco rises +3%. South Korean auto makers Kia Motors and Hyundai Motor are projecting 



















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euro, XEU, drops -1.6% this week to 1.2003 printing a low exactly at 1.20 at the June 2010 low. The dollar and euro baskets’ inverse relationship could not be clearer; the dollar explodes higher and the euro collapses lower on Draghi’s promises that a brand new shiny QE pony will be delivered on 1/22/15.

Traders are disappointed on the weak start to 2015 and ‘Santa Claus failing to call on Broad and Wall’ but are hoping for a big rebound on Monday and quickly dismiss the negativity as a meaningless trading day on low volume. The market bulls remain complacent and are optimistic on the stock market for 2015. The bulls are euphorically celebrating happy hour singing songs and telling each other that huge stock market gains are around the corner.