MARKET REPORT

Review:
– Oil prices surged intraday amid more headlines of attacks, and re-routings of tankers in the MidEast with WTI psuhing up near $75 before fading back
–  Daly notes rate cuts next year could be needed
– Mester said markets are a bit ahead of the Fed on rate cuts
– Goolsbee notes may need to shift focus to jobs
– AAPL will shortly halt Apple Watch Series 9 & Watch Ultra 2 within the US
– US Steel to be acquired by Nippon Steel.
– Dollar FLAT. AUD 67.05 EUR 91.55 GPB 126.48 JPY 142.91
– Gold up smalls 2040, Si down smalls 24.10.
– DOW flat 37660, ES up smalls 4790, ND up 0.6% 16915
– Crypto: BTC touched high 40k’s before rallying back to 42400 (had low 41’s a buy yest mkt report)

Upcoming:
– RBA Meeting Minutes
– BOJ IR Decision.
– US Building Permits/Housing Starts
– Canadian CPI
– Speakers: Fed’s Bostic, Goolsbee; BoE’s Green; ECB’s Elderson.

MAJORS:

DX:

AUD:

RBA Minutes.

EUR:

20 point range 91.45 to 91.65.
91 to 93 range expected.

Pound
Pound:
127 down to 126.30 before closing at 126.50.
125-127 range expected

Yen:

BoJ IR rate Dec

Gold and Silver:

Metals quiet with GC eeking out small gains. SI unched. $2041 & $24.11
No call.

Equities:
DAX -0.60% at 16,650.55,
FTSE 100 +0.50% at 7,614.48
CAC 40 -0.37% at 7,568.86
Euro Stoxx 50 -0.65% at 4,519.85
DOW Unch 37,670
ES +0.5% at 4790
ND +0.6% at 16920

US Sectors:          Communication Services +1.89%, Consumer Staples +1.08%, Consumer Discretionary +0.79%, Energy +0.76%, Technology +0.27%, Health +0.19%, Financials +0.14%, Industrials +0.07%, Materials +0.06%, Utilities -0.3%, Real Estate -0.35%.

United States Steel +26%: To be acquired by Nippon Steel (5401 JT) for USD 55/shr, valuing the co. at USD 14.9bln, including debt. Note, X closed Friday at USD 39.33/shr.

Apple -0.9%: Will shortly halt the sale of Apple Watch Series 9 and Apple Watch Ultra 2 within the US, according to 9to5mac.

Oil:
Oil prices bounced on Monday as tanker troubles in the Red Sea baked in a geopolitical risk premium. WTI and Brent futures hit their peaks of USD 74.26/bbl and 79.51/bbl, respectively, late in the NY morning before paring gradually into the settlement. The initial rally came after a slew of companies, including BP (BP/ LN), announced they would be pausing transits through the Red Sea amid an increasing number of tankers coming under attack by Yemen’s Houthis, choking supply to Europe through the Suez Canal. Meanwhile, Russian Deputy PM Novak said on Sunday that the country would deepen its oil export cuts in December beyond the 300k BPD already agreed for this year by potentially 50k BPD or more. Some of that deepening may have been forced given weather conditions. Reuters reported Monday that Black Sea’s CPC blend oil loadings had resumed on December 16th after the storm.
Oil report courtesy of zerohedge.com

Bond Yields:

1 Mo: 5.354 -0.028 6Mo 5.348 +0.01 1yr 4.971 +0.07 5yr 3.933 +0.003 10yr 3.935 +0.07 and the 30yr 4.048 +0.021
2’s/10’s

Crytpo:
“Perhaps a little more weakness to a low 41 handle, another little leg down, wouldn’t surprise but is a buying opportunity.”
Fri Mkt report.

High 40’s has formed a firm base. Doubt will see again. Getting ready for another Leg up to see 45, then stops. 50 in Jan.

Ive been saying for a while I like ETH with a low 21 handle too. We touched 2125 before closing above the 22 handle. Again, unlikely will see sub 2150 again. 2500 January.
Wouldn’t surprise another move up in both, keep eyes open and jump onboard.

Best of luck out there. Let the market come to you.

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