Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets in the day ahead. Today is Monday, Jan. 29, 2024. The Bottom Line segment of today’s podcast starts at (3:15) for listeners who want to skip ahead.
State of Play
A couple of developments emerged over the latter half of the weekend that demand our attention: China Evergrande was ordered to liquidate and US troops were killed in a drone attack in Jordan. This has put on edge an already embattled real estate sector in China and precarious geopolitical tinderbox in the Middle East. As we look at our board of indicators at 0640, none of this has really affected asset prices in the US at least:
Stock index futures aren’t doing much, with no major US index more than 0.2% from the break-even point;
Commodities too are eerily quiet. WTI crude oil is unchanged trading at $78/barrel, which is admittedly a lot higher than it was on Friday. Copper is unchanged;
Bonds are seeing bids. The yield on the 10-year is down 6 basis points to 4.10% (yields move inversely to prices).
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