Business

Greek 2Y bond yields soared, approaching 10% for the first time since September 2016, as an increasingly bitter fight between the nation’s creditors over its fiscal targets raised concerns it is running out of time to complete another review of its bailout program, and even sparked concerns a 4th Greek bailout may be in the offing. According to Bloomberg, the yield on Greek notes due in 2019 rose 79 basis points to 9.72% in afternoon trading in Athens.

Paul Singer, founder and President of Elliot Management Corporation is known for being a skeptic of traditional market pundits. In his fourth quarter letter, he made several different predictions about the market. He acknowledged the highly unpredictable environment that we have highlighted before in our articles about Trump and the markets. The letter also contains a specific warning about the worsening situation in China.

Beijing surprised China-watchers this morning, when the PBOC announced that in January, China’s foreign-currency reserves dipped by $12.3 billion, below the key "psychological level" of $3 trillion, or $2.998 trillion to be exact, declining for the 7th consecutive month, and dropping to the lowest since early 2011. Consensus had expected a drop of $10.5 billion to just above $3 trillion.

The dollar rebounded from a key 200-DMA support level, strengthening against all major peers, pushing S&P futures higher as European shares rose, led by basic resources and real estate, while Asian stocks fall. Gold fell from its highest level since November as demand for some haven assets ebbed while global bonds declined. Oil dipped, pressured by a stronger dollar.

Authored by Mark St.Cyr,