Eurozone

S&P Set To Open At All Time High, Boosted By Rising Crude On More "OPEC Deal Optimism"

European and Asian stocks rose after the early scare from the latest Fukushima quake dissipated, with the global risk on mood spurred by another jump in crude, which was up 1% in early trading, with the commodity complex now enjoying its biggest three-day rally since May, after Nigeria signaled optimism that OPEC will agree a supply-cut deal next week in Vienna. S&P futures are up 0.3%, with the cash index set to open at new record highs.

"Everything Is Not Awesome" - Don't Be The Turkey

"Things have not suddenly become awesome over the course of the past week... It is very easy to be sucked into the gushingly positive narratives and often unsupported narratives put forth by the financial media. This is particularly true when the move in asset prices can make minutes seem like days and hours seem like months. Excessive market valuations, weak internal measures, and a deteriorating backdrop has historically been a “wicked brew” for investor outcomes."

Key Events In The Coming Thanksgiving-Shortened Week

The key economic releases this week in the Thanksgiving-shortened week are the durable goods report and new home sales on Wednesday. There are several scheduled speaking engagements from Fed officials this week. Minutes from the November FOMC meeting will be released on Wednesday.

Trump's First Foreign Policy Test: Syria, Russia, & The Stability Of Europe

While Trump’s election may be bullish for US equities in the near term, it may be bearish for Europe, since if his success translates into more success for anti-establishment parties, that could raise the spectre of a disruptive dismantling of the Eurozone itself. These parties are also generally not in favor of the kind of deregulation and tax cuts proposed by Trump.

The Serfs Have Rebelled - Europe Next?

Hayek’s The Road to Serfdom described how personal freedoms are progressively eroded by the state in the name of the common good. In the main, the serfs are patient and tolerant of their masters, but in a democracy, the establishment behind the state risks being challenged. And that has happened twice this year, first with Brexit and now with Trump in America... but remember the serfs never win, as Hayek recognised.

This Is What The Market Thinks Will Happen To The "Trump Repatriation" Cash

"Tobias Levkovich’s US share-shrinker portfolio has risen sharply relative to the S&P following the US election. Clearly, the market thinks that much of the capital repatriated from overseas will be returned to shareholders.  This doesn’t bode especially well for those who hope policy changes will encourage a significant pick-up in US company capex."

Euro In Historic Slide As Dollar Surge, Bond Rout Continues

More of the same this morning as the dollar extended its advance on the still undeteremined Trump reflationary policy measures after Yellen signaled an interest-rate hike could be imminent, while bond yields around the globe rose again, metals declined,  European stocks advanced and futures were modestly in the red just shy of all time highs.

Totally Out Of Touch: Nicolas Sarkozy Seeks "Marshall Plan" For Africa

Does the average unemployed youth in Greece, Italy, or Spain give a rat’s ass about a Marshall plan for Africa? Hell no! They want a Marshall Plan for Greece, for Italy, and Spain. Sarkozy’s Marshall Plan for Africa idea shows how much out of touch these politically correct buffoons are.

BOJ "Fires Warning At Bond Market" Sending Global Yields, Dollar Lower; All Eyes On Yellen

Global bond yields and the dollar both weakened after the Bank of Japan offered to buy an unlimited amount of debt at fixed yields, stabilizing the global bond rout, while investors awaited testimony from Fed Chair Janet Yellen that will help shape the outlook for interest rates ahead of a December rate hike that is now seen as near certain.

How Trump Will Impact The European Union

Unsurprisingly, in Brussels people are not thrilled with Donald Trump’s election as new American President. EU Commission President Jean-Claude Juncker reacted by saying “We will need to teach the president-elect what Europe is and how it works”, but it seems more likely it is Europe that must learn about a number of new political realities. Here’s an overview of what it all means for the EU27...

Eirexit Coming Up!?

Irish bureaucrats may bury their heads and ignore those questions, but the average guy on the streets of Ireland will easily spot the answers. Eirexit is just a matter of time.

"A Barrage Of Fed Speakers": The Key Events In The Coming Very Busy Week

As markets continue to digest the implications of the US election outcome, there is a host of data and Central Bank communication adding to the running narrative with Fed speakers appearing on every single day of the week. In addition to barrage of daily Fed speakers, including Chair Yellen, we get US inflation data, retail sales, housing data, empire manufacturing, industrial production and the Philly Fed.

'Italeave' Looms As Italian Crisis Indicator Spikes To Record High After Trump Win

"The US election will help all those who have not had the courage to come out and say 'I will vote No'," proclaimed one of Italian PM Renzi's opponents as The FT reports the centre-left prime minister’s referendum on change is threatened by the global populist wave. Even before the US election, he faced a struggle to secure victory in the referendum, with most polls tilting in favor of voting 'No', albeit with many undecided voters, but opponents claim "many undecided voters in the polling booth will say ‘No No No’, just like Trump voters."