The gold stocks-to-S&P 500 ratio just broke out from key resistance
Source: Crescat Capital, Bloomberg
Why investing into the "next big thing" can be dangerous
Source: Compounding Quality
Italy's 10y risk spread over Germany narrows to the lowest level since April 2022
Source: Bloomberg
New all-time highs for industrial stocks Deere & Caterpillar
Are industrial stocks the new tech? Source charts: All Star Charts
Bond market in Germany sounds the recession alarm
German bond curve – measured by 2s/10s yield spread – inverts most in 30yrs. Typically, 10 year bonds pay investors more than 2 year to compensate for uncertainty that future holds. The anomaly often precedes a recession. Source: HolgerZ, Bloomberg
Bitcoin Miners have Stopped Selling and Started Buying
Source: Bitcoin news, Glassnode
U.S. 3-month government bond yield hits new highs!
The yield on three-month U.S. T-Bill rose 8 basis points to 4.66 percent, its highest level since 2007. This reflects the latest comments from Fed members in favor of further increases in the federal funds rates. It is worth noting that the next FOMC meeting will be held on February 1 and the market is so far expecting a 25 basis point increase. Source: Bloomberg
China Jet Fuel Demand Set To Soar Ahead Of Lunar New Year
China's oil demand could surge as it reopens after scraping zero Covid restrictions. Beijing's Covid curbs weighed on crude and refined products demand for three years. Soaring air travel demand ahead of the Lunar New Year is yet more evidence fuel demand is gathering steam. China's easing of border restrictions imposed almost three years ago has been a recent boon for air travel, domestically and internationally. There are no more mandatory quarantines for travelers arriving in China. BloombergNEF said jet fuel demand is rising in China ahead of the holidays. They noted that scheduled passenger flights for Jan 10 to 16 indicate jet fuel demand has reached about 0.61 million barrels per day (mbpd), rising 0.10 mbpd compared with a week earlier. Then by next week, jet fuel demand could increase to 0.72 mbpd. This would mark the highest demand for Chinese jet fuel in more than 1.5 years. Source: Bloomberg, www.zerohedge.com
