Asian indexes are a mixed bag favoring negativity after the
selling in the US. The SPASX200 drops -0.5% after reporting sluggish stagnant growth
at +2.5%. Aussie dollar teases on each side of 0.78. The NIKK drops -0.6%.
S&P rating agency cuts the credit rating on Sharp which collapses -5.3%.
SSEC gains +0.5%. China service sector growth is slow. China’s
NPC conference begins with a focus on pollution and corporate and government corruption.
Unfortunately, improvements in these areas will come at the expense of growth.
The NPC will release the GDP targets tomorrow; the key announcement from the
meetings. Will growth in China drop below +7%? In 2010, China growth was +9.8%
annually. In 2011, +8.9%. In 2012, +7.9%. In 2013, +7.6%. In 2014, +7.3%. Considering
the recent rate cuts by the PBOC (November and last week) and triple R cuts and
other stimulus, Chinese officials are obviously very concerned about the health
of the economy going forward.
The HSI tanks -1%. Hong Kong retail sales surprise to the
downside. Gaming stocks are losers as the Macau gambling revenue falls off a
cliff. Sands China and Galaxy Entertainment each drop -2%. KOSPI -0.2%.
The RBI announces a surprise rate cut of 25 bips to 7.75%
effective immediately; the second cut this year. The BSE briefly prints above
30K for the first time in history. The Nifty is above 9K although the indexes
pare gains quickly.
A Ukraine mine explosion in Donetsk kills
[Text is Redacted: Purchase March 2015-03 to Read the Complete Chronology]
[Text is Redacted: Purchase March 2015-03 to Read the Complete Chronology]
ISIS attacks a Libyan oil field. Iranian troops are joining
the fight against ISIS in Tikrit, Iraq. The Middle East mess creates strange
bedfellows with the US and Iran both fighting a common enemy; the Islamic
State. The enemy of my enemy is my enemy.
US ambassador Mark Lippert in South Korea is attacked by a
crazed man with a razor blade during a breakfast lecture (Thursday morning) and
is transported to the hospital bleeding from his head and wrist. Lippert is
expected to recover. The KOSPI opens for trading in a couple of hours.
Former Secretary of State Hillary Clinton, a potential
presidential candidate, is at the center of a new scandal involving her email
communications. Clinton had a server installed at her home and conducted official
US correspondence on a potentially unsecure platform. Her actions likely
indicate a conscious effort to avoid the Federal Records Act which will hamper a
run for the Whitehouse. Adding to Clinton’s problems, a subpoena is issued this
evening for her to turn over records including emails. Comically, in 2007,
Clinton berates government employees that illegally use a private email account
for official Federal business—exactly what she did.
Euro 1.1079. Dollar/yen 119.66. Pound 1.526. WTIC oil 51.63.
Brent oil 60.58. Natty 2.78. Gold 1201. Silver 16.23. Copper 2.66.
US Treasury yields are; 2-year 0.66%, 5-year 1.58%, 10-year
2.12%, 30-year 2.72%.
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