|Bid||0.00 x 1000|
|Ask||0.00 x 1000|
|Day's Range||261.27 - 264.21|
|52 Week Range||252.92 - 293.94|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.00|
|Expense Ratio (net)||0.09%|
Futures Jump on Brexit Vote Cancellation UK Prime Minister Theresa May all but admitted she does not have the votes to pass her Brexit deal through the British House of Commons by postponing the vote to a date yet to be decided. The Nasdaq and S&P 500 both jumped on the news, as it keeps […] The post Market Morning: Brexit Balk, Inflation Data, Tesla Swoops In On GM appeared first on Market Exclusive.
President Trump seems to be fixated on equity markets. On December 31, 2017, in response to a Fox Business article, Trump tweeted, “If the Dems (Crooked Hillary) got elected, your stocks would be down 50% from values on Election Day. Trump has always been quite quick to take credit for the stock market’s gains.
According to a report in the Wall Street Journal, President Trump is focused on stock markets and is contemplating the reasons behind the increased volatility lately. The S&P 500 (SPY), the Dow Jones Industrial Average (DIA), and the NASDAQ Composite (QQQ) fell by 4.4%, 4.4%, and 4.7%, respectively, last week.
The United States and China (FXI) have been involved in a bitter spat this year. While US-China trade relations have received all the attention as the two sides have imposed duties on billions of dollars of each other’s goods (TSLA), the tussle has a political as well as diplomatic angle. The most recent flashpoint between the United States and China is over the arrest of Huawei CFO Meng Wanzhou in Canada.
Over the weekend, China released its trade data for November. First, China’s export and import growth were lower than expected in November at multimonth lows. To add to the gloom, China’s politically sensitive trade deficit with the US reached a new record in November.
China’s trade surplus with the US (SPY) has been hitting one record after another. In November, China’s (MCHI) trade surplus rose to $35.6 billion, which is a new record. While China’s exports to the US rose 9.8% YoY (year-over-year), the imports fell 25% YoY.
On December 6, US crude oil’s implied volatility was 48.1%, which was 1.5% above its 15-day average. You can see the inverse relationship between oil prices and oil’s implied volatility is in the following graph. Since reaching a 12-year low in February 2016, US crude oil active futures have risen 96.5%. Crude oil’s implied volatility has fallen 36% since February 11, 2016.
Vale’s (VALE) CEO mentioned during Vale Day that the recent weakness in iron ore prices was expected due to the start of the winter season in China. Also, steel capacity cuts in China are lower this year as compared to last year, while steel mills are following the same approach of producing more in advance. This has led to additional weakness in iron ore.
Another volatile week of trading once again has traders worried about a potential U.S. recession and the beginning of a bear market for the S&P 500. The S&P 500 dipped as low as 2,621 on Thursday before bouncing back into the close. Although the S&P 500 ended the week on a low not Friday, Thursday’s low was far from a technical breakdown.