Led by technology, equities traded lower. Some are pointing to yet another reduction in We Work’s valuation to under $8 billion. Several weeks ago it was valued around $47 billion. Others were pointing to Chinese data. While others suggested it was earnings and economic concerns.
Many times I have commented about the lack of liquidity, primarily the result of regulatory fiat, trading mechanics and passive investing. Considerable attention has been focused on the liquidity issues of the repo market, liquidity that is being provided by the lender of last resort—the Federal Reserve.
Several times I have referenced JP Morgan’s Jamie Dimon’s view about the state of today’s research reports. Dimon opined many reports lack credibility at best, but impact trading given the contents of the reports is often times repeated in the Blogosphere thus offering false legitimacy.
The fourth Democratic debate produced nothing of significance as the candidates continue to map out their very progressive agenda. As I commented yesterday, I do not think the country is this far left and I again ask is how will the candidates switch their narrative to increase the odds of winning the general election?
Treasuries declined about 1 ½ points, perhaps the result of consumer confidence unexpectedly rising to the highest level in three months. Analysts had expected a decline. The gauge of current conditions climbed to the highest level this year while
Equities rose as China revised hopes of progress in trade talks. Volume was subdued because of Yom Kippor.
Speaking of which, oil rose because Turkey—a member NATO-- began a military offensive into northeastern Syria targeting US back Kurdish militants.
Led by technologies, equities sank on reports that the US is moving toward restrictions on ownership of Chinese equities in government sponsored pension plans. I think it is noteworthy that there is bipartisan support for such a plan
Some have commented that White House statements indicating it has no plans to delist Chinese companies helped offset the negative sentiment from Chinese remarks that it has narrowed the range of topics to be discussed. I am certain the interpretation of the upcoming meeting can be met by considerable volatility.