Dow sank 301 (but off the lows), decliners over advancers about 5-1 & NAZ gave back a very big 136. The MLP index dropped 6 to the 244s & the REIT index was fractionally lower to the 347s. Junk bond funds did little & Treasuries rose in price. Oil was off 1 to the 52s & gold inched up 1 to 1284 (more on both below).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
The White House rejected a trade planning meeting with Chinese counterparts this week due to outstanding disagreements between the 2 sides over the enforcement of intellectual property rules. Officials from the US trade representative's office were set to meet with 2 Chinese vice ministers this week to try to resolve trade differences before the Mar 1 deadline, but the meeting was called off, a source familiar with the situation confirmed. Should Beijing & DC fail to agree on a permanent solution, Pres Trump has said he will reinforce punitive tariffs on roughly ½ of all Chinese exports to the US. Asked for comment, the White House said that “the teams remain in touch in preparation for high level talks with Vice Premier Liu He at the end of this month.” One source suggested that talks may still happen over the phone, but the termination of the in-person visit signals that reaching a complete agreement beyond the basic tenants of the Group of 20 truce will be difficult. China offered to boost its imports from the US for 6 years. Chinese officials made the offer during negotiations in Beijing earlier in Jan. China would increase its annual import of US goods by a combined value of more than $1T, which was the first to report on the import boost offer.
US cancels trade planning meeting with China, source says
Crude-oil production from 7 major US shale plays is forecast to climb by 62K barrels a day in Feb to 8.2M barrels a day, according to a the Energy Information Administration. Oil output from the Permian Basin, which covers parts of western Texas & southeastern New Mexico, is expected to see the largest climb among the big shale plays, with an increase of 23K barrels a day in Feb from Jan. Feb West Texas Intermediate oil pared earlier declines, down $1.02 (1.9%) at $52.78 a barrel.
Pres Trump's expectations that the Supreme Court would hand him a win in talks over the gov shutdown now look likely to come to nothing. The justices took no action today on a case before them concerning the legality of the administration's decision to end the Obama-era immigration policy known as Deferred Action for Childhood Arrivals (DACA). The inaction effectively allows the program to continue, reducing Trump's already limited leverage in a high-stakes impasse over money for his proposed border wall. DACA allows certain young migrants who were brought to the US illegally as children to avoid deportation & receive permits to work in the country. Approximately 800K young undocumented immigrants have received work permits under the 2012 program, according to the Pew Research Center.
The Supreme Court just weakened Trump's hand in government shutdown talks
Gold futures turned higher with tensions on the rise following reports that the US canceled a meeting with China officials as the 2 nations attempt to reach a resolution to a trade dispute that has hurt the global economic outlook. US officials canceled preparatory trade talks this week with 2 Chinese vice ministers, ahead of a higher-level meeting in DC later this month. The countries face a Mar 1 deadline to reach an agreement on trade. The news appeared to emerge late in the trading session for gold futures, with prices for the metal turning up slightly round that time. It also followed a report from the IMF which cut the forecast for world economic growth this year. Gold for Feb delivery edged up by 80¢ to settle at $1283 an ounce. US stocks moved broadly lower, while the $ traded slightly weaker as gold futures settled. That tends to boost haven investment demand for gold.
The stock market is back to bouncing around like it did in Q4, not good for timid investors. The volatility index (VIX) is back over 20 (versus the low teens in the good old days of last year). There is a tremendous amount of interest on the trade talks & gov shutdown, both of which are stuck in the mud. Gold & Treasuries, traditional safe haven investments for nervous investors, remains strong. Earnings reports are coming this week, but they may not be able to bring the bulls out in force.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
The White House rejected a trade planning meeting with Chinese counterparts this week due to outstanding disagreements between the 2 sides over the enforcement of intellectual property rules. Officials from the US trade representative's office were set to meet with 2 Chinese vice ministers this week to try to resolve trade differences before the Mar 1 deadline, but the meeting was called off, a source familiar with the situation confirmed. Should Beijing & DC fail to agree on a permanent solution, Pres Trump has said he will reinforce punitive tariffs on roughly ½ of all Chinese exports to the US. Asked for comment, the White House said that “the teams remain in touch in preparation for high level talks with Vice Premier Liu He at the end of this month.” One source suggested that talks may still happen over the phone, but the termination of the in-person visit signals that reaching a complete agreement beyond the basic tenants of the Group of 20 truce will be difficult. China offered to boost its imports from the US for 6 years. Chinese officials made the offer during negotiations in Beijing earlier in Jan. China would increase its annual import of US goods by a combined value of more than $1T, which was the first to report on the import boost offer.
US cancels trade planning meeting with China, source says
Crude-oil production from 7 major US shale plays is forecast to climb by 62K barrels a day in Feb to 8.2M barrels a day, according to a the Energy Information Administration. Oil output from the Permian Basin, which covers parts of western Texas & southeastern New Mexico, is expected to see the largest climb among the big shale plays, with an increase of 23K barrels a day in Feb from Jan. Feb West Texas Intermediate oil pared earlier declines, down $1.02 (1.9%) at $52.78 a barrel.
EIA forecasts U.S. shale oil output up by 62,000 barrels a day in February
Pres Trump's expectations that the Supreme Court would hand him a win in talks over the gov shutdown now look likely to come to nothing. The justices took no action today on a case before them concerning the legality of the administration's decision to end the Obama-era immigration policy known as Deferred Action for Childhood Arrivals (DACA). The inaction effectively allows the program to continue, reducing Trump's already limited leverage in a high-stakes impasse over money for his proposed border wall. DACA allows certain young migrants who were brought to the US illegally as children to avoid deportation & receive permits to work in the country. Approximately 800K young undocumented immigrants have received work permits under the 2012 program, according to the Pew Research Center.
The Supreme Court just weakened Trump's hand in government shutdown talks
Gold futures turned higher with tensions on the rise following reports that the US canceled a meeting with China officials as the 2 nations attempt to reach a resolution to a trade dispute that has hurt the global economic outlook. US officials canceled preparatory trade talks this week with 2 Chinese vice ministers, ahead of a higher-level meeting in DC later this month. The countries face a Mar 1 deadline to reach an agreement on trade. The news appeared to emerge late in the trading session for gold futures, with prices for the metal turning up slightly round that time. It also followed a report from the IMF which cut the forecast for world economic growth this year. Gold for Feb delivery edged up by 80¢ to settle at $1283 an ounce. US stocks moved broadly lower, while the $ traded slightly weaker as gold futures settled. That tends to boost haven investment demand for gold.
Gold prices finish modestly higher as U.S.-China trade tensions rise
The stock market is back to bouncing around like it did in Q4, not good for timid investors. The volatility index (VIX) is back over 20 (versus the low teens in the good old days of last year). There is a tremendous amount of interest on the trade talks & gov shutdown, both of which are stuck in the mud. Gold & Treasuries, traditional safe haven investments for nervous investors, remains strong. Earnings reports are coming this week, but they may not be able to bring the bulls out in force.
Dow Jones Industrials
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