"In 1987 stocks crashed a few months after that. A repeat of that scenario suggests potential danger, especially as the market moves become parabolic. Those recently holding cash appear to be chasing a rallying market, adding fuel to the fire."
The loonie tumbled after the BOC hiked rates by 25bps as expected, however in a dovish twist it warned that " uncertainty surrounding the future of the North American Free Trade Agreement (NAFTA) is clouding the economic outlook."
"When we try enforcing stability by decree, a reckoning always follows. An unsustainable boom leads headlong to an inevitable bust... Such powerful interventions hurt the weakest and benefit the strongest (the holders of assets) as they create unsustainable, destructive distortions that ultimately lead to catastrophe."
"What the dickens is happening? Yes, the global economy is doing well. But we knew that.... All reasonable excuses to buy. But why the frenzy? There’s a simple reason and you don’t even need an Excel spreadsheet to calculate the implications for the market."
In a decision that Yonhap called an "unprecedented breakthrough", North and South Korea have agreed to form their first joint Olympic team and will march together under a unified flag during the opening ceremony
Goldman's FICC - bond, FX and commodity revenue - printed just $1.00 billion, well below the $1.28BN est., and a 50% plunge from the $2.00Bn reported a year earlier. This was the worst bond trading at Goldman since the financial crisis.
Like JPMorgan, Wells and Citi before it, on Wednesday morning Bank of America reported adjusted EPS for the fourth quarter that beat the average analyst estimate despite incurring a $2.9 billion tax-related charge and getting hit with a $292 million charge-off related to the Steinhoff scandal.
While global shares pulled back in early trading from record highs on Wednesday, U.S. equity index futures are staging another comeback and point to a higher open on Wednesday following a volatile day of trading Tuesday which saw the S&P 500 have its worst reversal in two years.
"We have a pro-detente President who for the first time in history is not permitted to at least try because every time he has a sensible conversation with Putin, no matter whether it's face to face or on the telephone, he's accused not only by the traditionally crazies in American politics but by the New York Times of treason."
The last week saw speculators in the EURUSD FX futures market added dramatically to their long positions. In fact, as Bloomberg reports, hedge funds and other speculative investors have amassed the heaviest long positions on the euro ever, according to the latest CFTC data.