Risk On

after the surprise Interest rate  cut from the BOJ  markets have been trading risk on/QE trade. QE trade, buy everything except Currency where Stimulus is being implemented.Yields are dropping around the world,Record low negative rates in japan as maturities up to 8 years have negative rates.The new lending  rate 0f-.1  will only apply to new deposits,so the Impact on Stimulus might not be as great as market pricing in.Both bunds and US 10’s  yields at lowest level  since April

yen did drop 200 pips immediately after announcement,and trades down 177 now.This could be the start of another currency war.No country wants to give up an inch in the shrinking export pie,so thus we could see more action by other countries to weaken their currency.China???   Euro??   down 100 pips  now .Dollar +100 ticks  and the leader  of the risk on movement as USA  on a tightening cycle.

Amzn  Big miss on holiday earnings,But it was up 6% yesterdays  so today 8% drop is insignificant.Whirlpool,Colgate -Palmolive complained about strong dollar hurting earnings and Chevron lost money in the quarter for first time since 2002. Mastercard, MSFT and American airlines had solid earnings

GDP was in line with consensus,and may have surprised some pundits who were calling for a disaster.yes it was a big Slowdown vs. Q3   but consumer spending and real final sales  were above consensus.For all of 2015 Consumer spending was +3.1%,the best year since 2005.For all of 2015 GDP was roughly $18 trillion!

Russia rumors regarding  OPEC  just that rumors.But still Oil up on the day as the Risk on /Good GDP Higher energy stock provide a tailwind.Lets  see if Spooz can maintain momentum  above 1910.

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