Bank of England

Pound Spikes As BOE "Hawkish" Vote Surprises Traders

The pound sharply reversed overnight losses rising as much as 0.3% to 1.2794 after the BOE announced it kept rates at 0.25%,however the hawkish surprise was the 5-3 vote which was far closer than expected, as two more MPC members , Saunders and McCafferty joined Forbes in calling for a rate hike on the back of rising inflation concerns. 

Global Markets Rebound As Tech Rout Ends; Sterling Rises

As the Fed begins its two-day meeting, global stocks have recovered their footing and European shares rise, led by a bounce in tech stocks as last Friday's global selloff that started in the sector shows signs of abating. Asian stocks and U.S. futures gain as investors turn their attention to today's Jeff Sessions testimony as well as tomorrow's barrage of macro data including Yellen, CPI and retail sales.

The U.K. Election: An Outsider Looking In

"Intuition suggests Saturday night’s horrific terrorist attacks on London Bridge would have solidified Conservative’s lead. But the polls counter-intuitively indicate a move in the opposite direction... It’s notable that May’s lead did not initially narrow based solely on events that were out of her control, as in three terrorist attacks in three months. Rather, it was her vow to make pensioners’ benefits progressive..."

Frontrunning: June 2

  • Strong U.S. job growth expected in May; wage rise seen moderate (Reuters)
  • Trump’s Paris Exit Leaves Him Isolated From C-Suites to Capitals (BBG)
  • Critics lament Trump climate move, supporters seek new deal (Reuters)
  • Musk, Iger to quit Trump advisory councils after Paris accord decision (Reuters)
  • Yuan Forecasters Getting It Wrong as China Jolts Markets (BBG)

After 47 Years, Stephen Lewis Calls It Quits In A Scathing Critique Of Modern Markets

"The post-2008 growth in global credit massively raises the risk of a future crisis, despite official measures requiring more stringent bank capital requirements. Even these strengthened defences would prove flimsy in the event of any future collapse in confidence, a collapse that is all too likely to occur in view of the aforementioned misallocation of capital."

Euro Surges As Trump Fears Slam Dollar; Futures Poised For New Records

In a replica of Monday's early trading, European shares are down, this time led by health-care stocks even as the Euro surges above 1.1050, the highest level since the US election. Asian equities rose, while S&P futures were unchanged although we expect the ramp to kick in any second, and take the NASDAQ to another all time high. Meanwhile, the US dollar weakened for a fifth day.