Another morning of extremes, at least in the Treasury and commodity complexes. 10-year bond yields are at 18-month lows. Gold touched a 12-week high. Oil plumbed a nearly 6-year low. Copper is down another 2.5 percent at a 5.5-year low, with similar weakness in Nickel and Zinc. Aluminum has also fallen 1.4 percent.
The drop in copper comes despite good news out of China, where December exports rose 9.7 percent year over year and imports contracted 2.4 percent, both better than expected. However, total Chinese trade increased only 3.4 percent in 2014, well short of the 7.5 percent goal. China should release its annual GDP figure for 2014 next week.
The UAE energy minister again said OPEC would not cut its oil output, reiterating a decision OPEC made at its last meeting in November. There are no prospects for an emergency OPEC meeting, despite pleading from Venezuela and Iran.
The energy minister, Suhail bin Mohammed al-Mazroui, did have one sage comment. He admitted neither he nor anyone else had any idea what oil prices would be in the future: "History tells us whenever we try to predict what will happen we will get it wrong. What I would say is that it is unlikely we will see a sudden rise—it will take some time..."
At least natural gas is up 2.5 percent, as we face another cold snap in the northeast United States.
Europe is strong, with many European banks up two to five percent. The Greek stock market also bouncing.