There’s an extreme level of divisiveness and it is turning the world, not to mention the financial markets, into a casino where no one really has a handle of the odds of either the game or what is ultimately at stake...
The interest rate on Turkish lira overnight swap transactions in the London market, which initially soared to 280% on Tuesday from 6.8% on July 29, according to Refinitiv data, before exploding as high as 1024bps, the highest on record.
"We see U.S. stocks at risk of fading fiscal stimulus. U.S. employment figures are in focus this week as this fiscal cliff nears and the pandemic’s spread in Sunbelt states is starting to affect economic activity."
Senior editor, Ash Bennington, joins managing editor, Ed Harrison, to reckon with the idea of whether a COVID-19 vaccine will be the “medical bailout” everyone…
"Either the risks to the recovery--COVID case spike, election concerns, fiscal cliff--need to subside and the market broadens or these risks will ultimately topple the winners, too."
Last week’s rallies put both the Nasdaq and S&P deep inside "long Gamma" territory "meaning it would require a powerful (and fast) blast down to risk opening-up something more insidious from a Dealer "pile-on" perspective."
With spreads between value and growth at record levels and an explosion of speculative listings through IPOs and SPACs underway, today’s market environment shares numerous features with prior peaks in 2000 and 2007.
