In this report I cover the early market action from London on Wednesday, May 9th, 2018. I look briefly at the precious metals, the stock market, the dollar, interest rates and the oil price. I note that despite lower gold and silver prices in dollar the gold price is actually performing well against other major fiat currencies like the Swiss franc, the Aussie dollar and sterling.
I look closely at what is happening at the Libor reference rate and how the Federal Reserve is trying to compete with the City of London with its new SOFR reference rate. I note that I think Libor is not being used to bring the financial system down but that the move to using the SOFR could cause financial instability as more than $300 trillion of derivatives and loans are based off the Libor reference rate.
To conclude with this report I go over a Mish article on zerohedge about the Australian real estate market and I also update the viewers on the new Chinese oil futures contract (petroyuan) on the Shanghai International Energy Exchange. I note how the launch of the futures contract has been a success and how the September 2018 contract traded over 200k lots today (May 9th, 2018).
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really always showing very important tropic in yourblog.i am a big fan of your post.because when i read your post i am learning alots of new thing in your post.its always educative for all steemians friend.but one week i am no comment in your post.its obviously my ned luck.i think that,i am missing alots of valuable post one week..but today i feel better my body.thanks to sharing for your market update in your blog..very well done..sir.. @maneco64 take care yourself and best of luck of your great work..
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Thanks @timuann!
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Great as always Maneco!
I will provide some commentary on the Australian housing market as I had spent a number of years working in the finance sector.
Our housing market with regards to finance, I believe is one of the better regulated markets. I think the expiring of interest only terms is a bit of a non-issue for the following reasons:
When assessing borrower's ability to borrow from the bank, the bank was generally assessing debt with a buffer of 3% and on principal and interest repayments. Thus any rise in interest rates/switch to principal and interest has already been accounted for when the loan was first ran through servicability.
APRA which is the regulator responsible for overseeing the banks have recently loosend their requirements on investor loans after having a cap on them for around 2 years. Banks could previously not have their investor loan book grow by above 10%. This signals APRA is happy with the state of affairs in the investor market.
Most interest only terms are easily rolled-over into new 5 year terms. Banks are happy to do this as they are gaining more interest,
The value of house prices have increased significantly from the start of 5 year interest terms. The loan to value ratio of most banks would books would be around 50-70% I believe.
As for the Petroyuan, I believe some local firms here in China are very much 'encouraged' to trade the contract...
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Thank you sir for share Early Market Update....very valuable no doubt about this.
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Very nice update market
I appreciate your dtube channel....
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wednesday daily report update is really helpful for us. Thank you.
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Very great market.
Thanks for update dtube.
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Thanks a lot for sharing about crypto ..Keep it up..m
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If you are doing a lot of good things for a while, we will be benefitted greatly. Thank you very much for giving such a post to us
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Thanks sir @maneco64 for the updates, been away from the net for a few days needed a break, catching up on your video's great stuff!
Awesome and interesting content 😊
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Early Market Update and the Look at Libor and the Petroyuan is so great,,i like it so much and egarly waited for this,@maneco,,
thanks for sharing.@upvoted
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