January 22, 2024
United States:
Shift in Key Options Bet Suggests S&P 500 Can Rally Even Further
Options traders are betting on more gains in the S&P 500 Index after it hit a record high on Friday.
A slew of bullish wagers shifted the yardstick of what’s seen as the upper bound of the US benchmark’s trading range. The so-called call wall has moved to 5,000 points from 4,800 — signaling that traders see the market clearing the next hurdle toward further gains, according to SpotGamma data. That points to a further 3.3% of upside, based on Friday’s close.
Europe:
Euro Zone’s Job-Market Puzzle Shows Risk of Early ECB Rate Cuts
The curious strength of the euro-area labor market is driving the European Central Bank’s push against expectations of impending interest-rate cuts.
Defying economic textbooks, unemployment just hit a record low amid what’s shaping up to be a first recession since the pandemic. The accompanying jump in pay means officials can’t sound the all-clear on inflation — despite it plummeting to less than 3%.
Asia:
Hong Kong Stocks at 36% Discount Show True Depth of China Gloom
A rout in Chinese stocks listed in Hong Kong intensified Monday, pushing their discount to mainland peers to the deepest in fifteen years in the latest sign of growing pessimism among international investors.
The Hang Seng China Enterprises Index fell 2.4%, inching closer to a level last seen almost two decades ago, while the onshore benchmark CSI 300 Index finished 1.6% lower. As a result, a gauge tracking mainland stocks’ price gaps versus their dual listings in Hong Kong reached the widest since 2009 — implying a 36% discount for the offshore market.
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