Equity Markets

Tinfoil: It's Getting Harder To Leave Home Without It

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?

Inflation Is About To Spike Due To The "Base Effect"

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."

Global Stocks, Futures Jump On Strong China Inflation; Oil Rises Above $51

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.

Political Risk Strikes US Equities

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.

Recession Now... Or Depression Later

Currently economists and market watchers roughly fall into two camps: Those who believe that the Federal Reserve must begin raising interest rates now so that it will have enough rate cutting firepower to fight the next recession, and those who believe that raising rates now will simply precipitate an immediate recession and force the Fed into battle without the tools it has traditionally used to stimulate growth. Both camps are delusional, but for different reasons.

Global Stocks Decline On Samsung Woes; Rising Dollar Pressures Oil

Global markets and US equity futures fell on Samsung Galaxy Note 7 contagion concern, while the dollar rose to its strongest level in 11 weeks and U.S. bonds declined as investors boosted wagers that the Federal Reserve will raise interest rates this year.

Key Events In The Coming Week

In the US focus will be on the market's reaction to the second presidential debate, FOMC Minutes but also retail sales, import and producer prices and Michigan sentiment. We also hear from various Fed speakers throughout the week, and Chair Yellen gives a keynote speech on Friday.

JPM Explains How HFTs Caused Friday's Sterling Flash Crash

"The advent of non-bank liquidity providers such as HFTs has reduced bid ask spread and increased market efficiency in FX markets, but at the cost of lower market depth and withdrawal of liquidity provision in periods of stress."