Tuesday, December 24, 2013

Morning Memo: Tuesday, December 24, 2013

"Morning Memo" begins below this "NOTE for  NEWCOMERS" to "Morning Memo"...... Each morning, we post a short bullet-point list of noteworthy events, data, etc that find their way into the assessment of global markets.  It's far from complete and is not meant to be an exhaustive reconciliation of all things that could possibly impact stocks, bonds, currencies and commodities!  Rather, it's best viewed as a cryptic memo of "highlights", noteworthy items that took place in Asia, European and US hours.....and color-coded 'Red' for seemingly negative impact on equity markets, 'Green' for positive.
This will also serve as a useful review mechanism, as scrolling through the series of "Morning Memo" posts over time ought to summarily highlight what generally drove price action.  

We hope you find this useful and informative....and as always, that you'll share feedback!!

5:00am ET...
  •  Asia...generally higher.
  • Japan...the gov't published a monthly economic report omitting the word "deflation" for the first time in four years and pointing to 'moderate recovery'!  
  • China...short-term money market rates are still high, indicating liquidity issues, despite government efforts to add liquidity to calm the situation.  Nevertheless, the equity markets rallied as short term rates came off levels to which they spiked on Monday.  Banks are rushing to grab cash in order to meet loan-to-deposit ratios at year-end.
  • Australia...equities continue to rally, with bank too rallying despite Monday's announcement that they'd be req'd to maintain higher capital reserve requirement levels.
  • Europe...markets higher.  Economic activity in the Eurozone picked up in December according to an indicator put our by the Bank of Italy and the Center for Economic Policy Research.
  • Of interest:
    • Despite the recent bi-partisan two-year budget deal, it's probably good to remember the following in terms of potential fiscal policy risks:
    More later:
Please continue to visit Soos Global Market Musings for updates.

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(Please note: This article is solely meant to be thought provoking and is not in any way meant to be personal investment advice. Each investor is obligated to opine and decide for themselves as to the appropriateness of anything said in this article to their unique financial profile, risk tolerances and portfolio goals).
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