• FX: Risk trades were in demand, despite escalating protests in Hong Kong, making the aussie the day’s strongest major currency and the yen the weakest performer.
  • US CPI figures printed a tick hotter than expected at 1.8% y/y, perhaps decreasing the likelihood of aggressive Fed rate cuts in the coming months.
  • Commodities: Gold ticked lower on improving risk appetite, while oil (WTI) tacked on another 4% today.

  • US indices saw a big bullish turnaround on news that the US would delay 10% tariffs on certain goods, including cell phones, “to help a lot of people” ahead of the Christmas shopping season.
  • Technology stocks (XLK) were the strongest sector on the risk asset revival; utilities (XLU) brought up the rear today.
  • Traders will be keeping a close eye on tonight’s release of Chinese industrial production, retail sales and fixed asset investment data for any negative impact from the ongoing trade tensions with the US.
  • Stocks on the Move:
  • Big tariff delay winners today include Apple (AAPL, +4%) and Best Buy (BBY, +6%)
  • US-listed shares of JD.com (JD) surged 13% following a better-than-expected earnings report from the Chinese online retailer.
  • Insurer Genworth Financial (GNW) gained 16% after announcing a deal to sell a majority stake in its Canadian subsidiary.

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DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

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