“The risk to US exceptionalism…is a 2nd wave of inflation forces the Fed to hike, [and/or] change in Fed leadership, [and/or] Treasury yield spike to 6%... US dollar overshoot smacks US EPS, yields cause consumer delinquencies/recession & liquidation of stocks/crypto…best play = gold to $3333.” -Hartnett
Silver: A nice up week for price and very solid for weekly momentum.
For price it was just a solid weekly rally after repeated attempts at pushing silver into the $29s to get it going on the downside. No luck for the forever silver bears. But for momentum, it ended a three-wave downside process with the third wave non-confirming price’s marginal new lows in mid-December. And then it turned up last week through structures.
Weekly momentum had also already developed a three-wave decline with the final wave non-confirming the December price lows. Then last week … bang!
US equities retreated on Friday after a stronger than expected jobs report diminished expectations for rate cuts by the Fed this year. Large caps bested small caps: S&P 500 (-1.54%) vs. Russell 2000 (-2.22%). MSCI Emerging Markets (EEM) and MSCI EAFE (EFA) fell 1.70% and 1.52% respectively.
Market News: Biden Decides to Enforce Sanctions
“Last Friday, with less than 2 weeks to go until Biden exits we got the shocking news that the US Treasury would enforce sanctions against Russian oil giants, Surgutneftgas and Gazprom Neft, while also dramatically expanding a highly effective program of targeting individual oil tankers expanding the list to some 270 total tankers sanctioned for carrying Russian oil, listing traders organizing hundreds of illicit shipments, naming pivotal insurance companies, and telling two US oil service providers to exit.
In short, an unprecedented crackdown on Russian oil exports, one which should have taken place the day after the Ukraine war, but didn't because Biden knew it would send oil prices surging.”- ZeroHedge
"The U.S. labor market has found its footing, a relief to households and businesses but a growing cause for concern in financial markets. The U.S. economy added 256,000 jobs in December and the unemployment rate edged down to 4.1%, the Labor Department said Friday. Last month’s gain in nonfarm payrolls was the biggest since March... The silver lining for markets was that wage growth continued to moderate. Average hourly earnings rose 0.3% from November to $35.69, in line with expectations but slightly slower than the prior month." Source:WSJ
"The Biden administration on Friday issued sweeping sanctions targeting the Russian energy sector, taking aim at Moscow’s oil revenues just days before Donald Trump takes office. The measures include sanctions on Russian oil producers Gazprom Neft and Surgutneftegas, and the blacklisting of 183 vessels involved in Russian energy exports. Dozens of traders, Russia-based oilfield service providers and energy officials were also targeted. The US Treasury said the UK would apply sanctions to the two major oil producers in co-ordination with Washington." Source: FT
"US consumers’ long-term inflation expectations jumped to the highest since 2008 on concerns about potential tariffs from the incoming Trump administration. Bloomberg
"Eli Lilly, the world’s largest drugmaker by market value, is in advanced talks to buy cancer-focused biotech Scorpion Therapeutics in a deal worth up to $2.5bn FT
"Delta Air Lines’ first-quarter outlook on Friday topped analyst expectations as the carrier forecast strong travel demand to start the year, which CEO Ed Bastian said will likely be the carrier’s best ever. CNBC
A breakthrough has been reached in Doha, a final draft of the Gaza Ceasefire and hostage release has been sent to Hamas and Israel for approval, according to an official cited by Reuters.
Israeli Finance Minister says the Gaza ceasefire deal is a catastrophe for Israel's national security. Says will not be a part of surrender deal that will include the release of terrorists and the cessation of war.
Israeli PM Netanyahu spoke with US President Biden on Sunday in which they discussed negotiations for a Gaza ceasefire and a hostage deal, while Biden stressed the immediate need for a ceasefire and return of hostages, as well as the need for a surge in humanitarian aid enabled by a stoppage in
Ukrainian President Zelensky said Ukrainian soldiers captured North Korean military personnel in Russia’s Kursk region, while he later commented that Kyiv is ready to hand over North Korean soldiers if North Korean leader Kim can organise their exchange for Ukrainians captive in Russia. It was separately reported that a South Korean lawmaker said North Korean troop fatalities in Ukraine exceeded 3,000.
Russia took control of the settlements of Shevchenko, Kalynove and Yantarne in eastern Ukraine, according to TASS.
Russian Foreign Ministry said new US sanctions against the energy sector are an effort to harm Russia’s economy at the cost of risking destabilisation of global markets and Russia will respond to Washington’s hostile actions.
US President Biden said on Friday that as long as they keep Western Europe united on Ukraine, there is a real chance Ukrainians can prevail, while he added that Russian President Putin is in tough shape right now and it is important that Putin does not have more breathing room to do what he is doing.
US President-elect Trump’s incoming National Security Adviser Waltz said he expects a call between Trump and Russian President Putin in the coming days and weeks, according to an ABC News interview.
White House said US President Biden discussed trilateral maritime security and economic cooperation with the leaders of Japan and the Philippines, while they discussed China’s dangerous, unlawful behaviour in the South China Sea and agreed on the importance of continued coordination in the Indo-Pacific.
Denmark’s government sent private messages to the Trump team expressing a willingness to discuss increased US military and security presence in Greenland, according to Axios.
Japan will test hypersonic missile tracking with space sensors and will deploy sensors which is set for a first launch in fiscal 2025 to resupply the International Space Station, according to Nikkei.
via Newssquawk
Data on Deck: PPI, CPI
MONDAY, JAN. 13 2:00 pm Monthly U.S. federal budget
