Limit Up!

Limit Up! 6th January 2025

Written by Ian Reynolds | Jan 6, 2025 5:38:04 AM

Risk On

Quiet markets to start the new year but US equities and crypto were  higher with Bitcoin approaching USD 100,000 again. This is probably a reaction to all the "markets are going to crash" experts getting it wrong. They'll be right soon but so will a stopped clock. In trading it's timing that's more important than price.

The USD was slightly weaker which took some pressure off.

But bonds are telling us another story.

Equity markets at c.o.b Friday

Japan

JGB yield back up to the level in 2012 as Ueda continues to talk rate hikes.

Japan 10 Year Government Bond Yield Daily

  

US Bonds

US 10 year treasury yields continue to tick back up.

US 10 Year Government Bond Yield Daily

China Equities

Despite all the stimulus the stock market can't seem to rally further. 

Shanghai Composite Daily

China Peg Broken?

And the USD / YUAN peg looks as though it's broken.

USD / OFFSHORE YUAN Daily

Politics

According to credible sources Canada PM Trudeau is to resign as early as today, possibly making Canada yet another country without a leader joining Germany, France and Spain. I would add the UK too.

Canada’s Trudeau Is Likely to Resign This Week, Globe Reports [Globe & Mail]

Trump's sentencing for the hush money saga is scheduled for 10th January.

Later today

Germany CPI December 2024


Interesting

Where the next financial crisis could emerge [FT]