Morning Notes

10/01/2019 - Argonaut Morning Note

Key News Overnight: 

China / US trade talks ended yesterday, with some optimism but little detail; The divide between the border wall proponents and the Democrats is as wide as ever, extending the US Government shutdown; US stocks rose on trade and the more dovish approach outlined in minutes of the latest Fed meeting; The Dow climbed 0.4% (92 points) to 23,879 and the S&P 500 by a similar amount to 2,585;

The oil price continues to surge, up 23% since its pre-Christmas low, with WTI now at $52.36/bbl and Brent at $61.35/bbl; Spreads on corporate debt have narrowed as investors appear to be prepared to take on more risk at the start of 2019; China’s car sales fell for the first time in more than 20 years in 2018

China is rolling out stimulus (see comments in these Notes) and will cut the tax burden on smaller firms for the next 3 years
The EU unemployment rates dipped to 7.9%, the lowest jobless rate since October 2008

 

Recent Research:

DCN, ATU, Energy, OEL, Cyclical Industrials, ANG, ASL, DCG, GNG, PEA, SXE, SRG, SWK, VMX

 

 

Please read Argonaut's Important Disclaimers & disclosures

Log in to the client area below to download the full Morning Note PDF

 

Argonaut Morning Note