Holiday Mood
Well, I it is safe to say that again markets rallied on no improved fundamentals and on light volume during holiday time. The most profitable companies have lagged during this run. Bloomberg link: Most Profitable CEOs Get Smallest Gains in S&P 500.
Anything could happen, the rally could last….
Chinese Premier Wen Jiabao again reaffirmed his position that China won’t devalue Yuan. China needs favorable exchange rate to fuel it’s exports, and it’s completely unrealistic from the western leaders to demand a change in foreign exchange policy. Bloomberg story: Yuan Forwards Retreat After Wen Rejects Calls for Appreciation.
Some positive data coming from Japan today. Industrial production rose 2.6% vs. 2.5% forecast. Retail trade was down 1% in November vs. -1.1% forecast.
News on crude oil excess supply continue. Bloomberg link: Tanker Glut Signals 25% Drop on 26-Mile Line of Ships.