China’s State Administration reported the largest outflow of yuan since they began reporting in 2010. Meanwhile, the yuan fell to a 6-year low. Asian markets were mostly lower. The Nikkei 225 was down -0.30% while the Shanghai Composite rose +0.22%.
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European equities were narrowly mixed even as the euro continued to fall against the US$. The DAX finished slightly higher, up +0.09%. Yields on the 10-yr. Bund also fell to +0.004%.
There were no U.S. economic reports today. Baker Hughes reported that the oil rig count rose by 11 to 443, marking the 8th straight increase and 17 straight weeks without a decline.
Yields on the 10-Year Note held steady at 1.736%. The US$ Index is at the best levels since early March. Despite the US$ strength, gold has been fairly firm, closing up $0.20 at $1,267.70. Crude has also managed to hold firm against US$ strength and the increasing rig count, December Crude finished today +0.4% at $50.85.
In a pattern that has become somewhat repetitive, equities began the day falling into the red, but managed to find their footing and fight back all the way into the green. Momentum in either direction has remained elusive. At the close, markets were again narrowly mixed.