U.S. Equity Markets predominantly closed higher with the S&P 500 printing a fresh record high while T-notes saw gradual selling, more so in the belly. The upside in stocks was led by the NASDAQ 100 with Tech and Communication names the only sectors truly in the green with the upside in heavyweight stocks supporting the overall market. US President Trump unveiled project stargate, a USD 500 billion AI project which supported AI names like Nvidia (NVDA) while Oracle (ORCL) also surged due to its direct involvement with the project. Communication names were also supported by the stellar Netflix (NFLX) earnings report on Tuesday night. In FX, price action was rather mundane aside from the Japanese Yen, which saw notable weakness in the risk on trade with all eyes turning to the Bank of Japan tomorrow. The Canadian Dollar also softened with soft PPI adding to the soft CPI data ahead of the Bank of Canada Meeting next week. The Euro saw marginal selling in response to commentary from ECB President Lagarde ahead of the ECB blackout period from tomorrow, who suggested Trump’s presidency will not affect the ECB’s policy path as it currently stands. T-notes were weighed on amid a strong risk environment with upside in US equities while selling was observed ahead of the 20 Year Treasury Auction and amid the Saudi PIF launching a USD 4 billion 2-parter. The strong 20 Year offering put a floor in the selling with T-notes paring into settlement. Crude prices chopped to the Dollar and Trump tariff updates. On which, Trump said the EU treats the US badly and they will be in for tariffs, while the Wall Street Journal reported that Trump is pushing for early renegotiation of the US trade deal with Mexico and Canada. The US President also said they are talking about a 10% tariff on China, for sending them fentanyl. He also threatened Russia, noting if they do not agree to a deal soon regarding Ukraine, he will have to tariff, tax and implement sanctions on Russia. The US Treasury sold USD 13 billion of 20yr bonds with a high yield of 4.900%, stopping through the when issued by 1.1bps, a much better result than the prior tail of 1.5bps and vs a six auction average of a tail of 1.3bps. The bid-to-cover was also strong at 2.75x, above the prior 2.5x and average of 2.53x. The breakdown saw direct demand unchanged at 20.1% while indirect demand jumped back up to 69.5% from 62%, a touch above the six auction average. The rise in indirect demand saw dealers (forced surplus buyers) take just 10.4% of the offering, down from the prior 17.9% and average 15.3%. Elsewhere, Oil closed 0.4% lower, while Gold end Wednesday with a small gain of 0.3%.
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For anyone following my Platinum Service it made 45 points yesterday and is now ahead by 1994 points for January after closing December with a gain of 1997 points after closing November with a gain of 3049 points having finished October with a gain of 2179 points. September saw a gain of 4402 points following a 301-point loss for August after closing July with a gain of 1918 points while June closed with a gain of 2074 points, having made 1843 points in May. The Platinum Service made 4010 points in April after ending March with a gain of 2113 points. February closed with a gain of 1606 points, after closing January with a gain of 3675 points. December saw a gain of 1890 points after finishing November with a gain of 1734 points. October ended with a gain of 3184 after closing September with a small gain of 228 points, after finishing August with a gain of 1485 points, following a small gain of 285 points gain in July, after closing June with a gain of 2683 points. May closed with a gain of 3205 points. April saw a gain of 3354 points while March closed with a gain of 6168 points. The Platinum Service made a record 9619 points last October. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1900 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
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