Morgan Stanley

Morgan Stanley: "The Debt Ceiling Worries Us Most"

"Multiple failures in the US to pass healthcare legislation, despite single-party control, raise questions about a whole host of other issues, from the debt ceiling, to the budget, to taxes. The debt ceiling worries us most, given that action may need to be taken within as little as seven weeks..."

Is The Real Dollar Pain-Trade Lower?

Trump’s inauguration proved to be the top, and it has been nothing but downhill since then. I am actually quite mad at myself, fading this consensus trade proved to be one of the greatest trades of 2017. Yet the interesting part of this extended move? No one is getting excited about it...

Frontrunning: July 20

  • Futures flat as investors await earnings deluge (Reuters)
  • Investors Brace for Clues on ECB’s Tapering Plans (WSJ)
  • When Will the ECB Pull Its Trillions From the Markets? (BBG)
  • Citing Recusal, Trump Says He Wouldn’t Have Hired Sessions (NYT)
  • Trump Urges GOP to Seek Agreement on Health Measure (WSJ)

World Stocks Hit Record High For 10th Consecutive Day In "No-Vol Nirvana"

Traders, so mostly algos, are riding a global risk "high" in stocks as Asia's and then Europe's early 0.4 percent gains ensured MSCI's 47-country All World index was up for a 10th straight session. This is the longest winning streak in global stocks since February 2015 and shows little sign of fatigue even as bond yields edged modestly higher again.

Global Stocks Hit Record High, Set For Longest Winning Streak Since 2015

With the USD just off 10-month lows, there continues to be an easing of loosening of financial conditions for emerging markets which also supports equities. After decent gains in Asia on the back of positive signs from China this week, MSCI's world stocks index looked set for a ninth day of gains which would mark its longest winning streak since October 2015.

Key Events In The Coming Week: The Summer Doldrums Arrive

With little on the US economic docket in the coming days, this week's focus is on the ECB and BoJ meeting along with minutes from the RBA and the Riksbank. In the US The key economic release this week is housing starts on Thursday. There are no scheduled Fed speaking engagements this week.

Sleepy Overnight Session Interrupted By Chinese Market Turmoil

While it was indeed a generally quiet session (with Japan markets closed), US equity futures continued their run into record territory (ES up 0.1% to 2,458.50), and Europe fractionally lower, the early Monday focus was on the previously discussed turmoil for Chinese markets where despite a solid set of Chinese data small caps tumbled, selling off into the close after further warnings of regulatory scrutiny and deleveraging,

Bill Blain: The Trump Fiasco Will Keep Yellen From Doing "Anything Extraordinary" Today

"The Trump Jump now look increasingly unachievable ahead of the next electoral cycle in 2018. No doubt markets will quickly shrug it off. However, the pressure on markets and gridlock on Washington spending plans is probably enough to keep the Fed from doing anything extraordinary – Yellen gives here bi-annual Humphrey Hawkins testimony later today." - Bill Blain

Morgan Stanley Slashes SNAP Price Target To $16 From $28 After Sub-IPO Plunge

Just hours after Snap(chat), or rather its shareholders, were gravely injured when the stock tumbled below its IPO price, Morgan Stanley decided to add some insult, when its analyst Brian Nowak downgraded the social network, or photo app, or whatever it is these days, to equal-weight, cutting its price target to $16 from $28 on ad product and competition concerns.