Market Sentiment

Weekend Reading: They're Baaaccckkk!

"With cash levels at the lowest level since 1997, and equity allocations near the highest levels since 1999 and 2007... investors are now functionally 'all in'..."

World Stocks Hit Fresh Record High As Irma, Korea Rally Continues; Pounds Surges

World stocks hit new record highs on Tuesday amid a continuation of Monday's risk-on theme which unleashed a dramatic relief rally on easing North Korea tensions and signs that Hurricane Irma caused less damage than feared. The MSCI All-Country World Index gained 0.2%, hitting the highest on record with a fifth consecutive advance.

Chinese Shares Surge As Beijing "Plunge Protection Team" Boosts Stock Holdings

Overnight, Chinese stocks hit their highest level since December 2015, not due to strong and improving fundamentals, but because China's "National Team", aka Beijing's PPT, in this case state-backed investor China Securities Finance Corp, announced it had boosted its stake across the entire broker sector.

Stocks Slide After Trump Threatens Government Shutdown Over Wall Funding, Killing NAFTA

US equity futures reversed early gains to slip as much as 0.3% following a fiery Trump campaign rally speech in which he threatened to shutdown government over border wall funding. Additionally, the yen strengthened, while the Mexican peso weakened 0.2 percent as the president also said he might terminate the North American Free Trade Agreement at some point.

Bill Blain: There Is A "Last Days Of Rome" Feel To The News These Days...

"I suspect we’re into completely uncharted waters here. The central bankers know we need to normalise and rebuild the broken structures of capitalism and market based economies, without it becoming too apparent they are so broken – which would cause financial panic… On the other hand the cure might prove as painful as the self-inflicted injury of QE."

Pakistan Plunges Into Political Turmoil After Prime Minister Ousted For Corruption

Pakistan plunged into political turmoil when its Prime Minister Nawaz Sharif resigned shortly after the Supreme Court ousted him from office on Friday following an investigation into allegations of corruption centering on undeclared offshore assets.  The court disqualified Sharif for not being “honest”, a requirement for lawmakers under Pakistan’s constitution, something the US sorely needs to amend as well.

Bill Blain: "Welcome To The Second Half In Which Many Are Very Concerned About A Bubblicious Market Reversal"

"Lots of participants remain very concerned on the prospects for bubblicious stock market reversal later this year, but others point to yet more upside. There are clear signals of concern about what the withdrawl of “extraordinary monetary policy” will mean. Normalisation is seen as a threat by some, but by others as a very useful “reset” to get markets back on a properly priced realistic track."