December 12, 2018

Market News

Stocks are rallying to begin Wednesday’s trading session as the trade war narrative continues to steer asset allocations.  China is planning to cut tariffs from 40% to 15% on vehicles produced in the U.S., leading many to believe that the gesture is a sign of things to come.  Global equities rallied hard in response to the news, with European and Asian markets notching over 1% gains.  The S&P500 is currently trading at 2,666.09, 1.11% higher.

Treasuries are trading marginally lower in the AM as ambiguity surrounding the U.S./China trade relationship wanes.  Additionally, CPI for the month of November (ex food/energy) matched analyst expectations, coming in at a 0.2% MoM increase, and a 2.2% YoY rise.  The 2/10 UST spread notched a new YTD low in yesterday’s trading session at 11.2bps as investors reassess growth prospects and interest rate hikes in 2019.  The US 10-Yr Note is currently trading at 2.8951%, 0.0161 higher.

 

Josh Pappert – VP, Capital Markets
Nations Direct Mortgage