Global stocks were modestly higher, before the European Central Bank gives its policy update, while investors weigh mixed earnings results. Asian stocks rise, U.S. equity-index futures are little changed. The euro touched its weakest level since July and stocks in the region fell after their first back-to-back gains in two weeks.
US equity markets have gone nowhere fast since the start of September, coiling in a narrow range and breaking down. This also coincides with the peak in speculative long positioning in S&P Futures and for the first time since April, large speculators are net short the US equity market.
If yesterday's session was marked by concerns about Fed tightening and rising long-end rates, today concerns about a hawkish Fed have subsided, with European, Asian stocks and S&P futures all rising amid speculation Federal Reserve policy will remain accommodative after yesterday's dovish comments by Fed vice-Chair Stan Fischer, as well as weak economic data helped push the US Dollar off its 7 month highs.
M.C. Escher’s famous painting “Ascending and Descending”, and recent market trends have a lot in common. They both portray a lot of up and down movement and what many may perceive to be trends. However, when studied closely, they both show little to no absolute change in direction.
World stocks started the week in the red Monday as the dollar touched a 7-month high and U.S. and European government bond yields climbed to their highest since June following the Friday speeches by Eric Rosengren and Janet Yellen which hinted the Fed's next step could be to pursue a steepening of the TSY yield curve the same as the BOJ.
It’s getting harder to be out amongst the public as an informed person and not feel as if there isn’t something to all the “lunacy.” For if you speak to nearly anyone these days be it family, friends, coworkers, or the occasional overheard conversations of strangers. You can’t help wondering: how can so many be so clueless?
In June, oil was still down 20% relative to a year prior. Last month, that year-over-year change had already risen to 0%. And if prices hold at current levels, oil will be up 45% at year-end. To repeat for emphasis, that’s -20% YoY to +45% YoY in the space of six months."
One day after a slump in Chinese trade sparked a global market selloff on concerns the world's second biggest economy had once again hit a downward inflection point, overnight China surprised once again, this time to the upside when the latest inflationary data printed hotter than expected, sending European and Asian stocks higher and pushing the yen lower after China’s producer price index rose for the first time since March 2012.
With China turmoiling once again, Yuan's tumble is rippling through global markets pushing US equity markets to 3-month lows. The S&P 500 is back at Brexit ledge levels, The Dow broke below 18,000, and VIX spiked to 18...
With just 26 days until the U.S. election, U.S. stock markets are starting to consider the possibility of a dramatic Republican loss - not just the Presidential contest, but the party’s hold on Congress.