10 Oct TODAY IS SO STRANGE THAT NO ONE COULD HAVE MADE UP THESE EVENTS
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.
And then there is California. There is the potential to have an epic blackout in California, the result of PG&E voluntarily cutting power to 513,000 customers to ensure that its powerlines will not spark fires.
As widely known PG&E entered bankruptcy because it was blamed for past fires.
More than 2.7 million people may be affected; areas including portions of Oakland and Berkley but affluent residents in San Francisco and Silicon Valley will be unaffected. Power may be disrupted for as long as five days.
What will be the unintended consequences of first the blaming and making the utility pay for the fire and second utility policy since enacted to ensure lower odds of another conflagration?
Speaking of more improbable events, Greece the one time bond market pariah at the heart of Europe’s sovereign debt crisis just sold debt with a negative yield. Greece joins other “weak sisters” of Italy, Spain and Ireland whose debt is also negative.
Wow! Life is indeed stranger than fiction where not even the most extremist forecaster would have suggested such could occur.
Speaking of improbable events, I will not comment about the impeachment of President Trump. I do not know what to believe nor do I believe does anyone else.
But what I am concerned about is the process. Our society is based upon due process, the ability to know and question one’s accuser. Second and third hand accounts are typically not credible and dismissed.
The rush to judgement is frightening and the possible precedent could eviscerate the legal system that is designed to be adversarial in nature to ensure a very low probability of Kangaroo Court and puppet trial. This precedent could have a large impact upon the markets and society.
Finally there is yesterday’s 10-year Treasury auction. It was not well received causing yields for both the 10 and 30-year Treasury to rise. How will today’s 30-year auction be met?
Last night the foreign markets were mixed. London was down 0.14%, Paris up 0.20% and Frankfurt down 0.17%. China was up 0.78%, Japan up 0.45% and Hang Sang up 0.10%.
The Dow should open nominally lower after great volatility overnight in S & P 500 futures, the result of conflicting trade reports. The 10-year is unchngaged at 1.58%.