The German election offered no decisive outcome and we are now faced with the prospect of an extensive period of building a ruling coalition and a likely garbled policy mandate. Elsewhere, the issue that will increasingly seize market attention this week is the recent rise in US yields and how...
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COT: Dollar long jumps, commodities sold on China concerns
Futures positions and changes made by hedge funds across commodities, forex, bonds and stock indices up until last Tuesday, September 21. A week that registered the biggest stock market slide in four months as traders grew increasingly worried about China Evergrande Group's debt problems, as well as pre-FOMC market jitters....
US treasury yields, fiscal outlook and debt ceiling concerns top the agenda this week
Today we look at the latest advance in US equities despite ongoing concerns centered on energy prices and the critical focus this week: the fate of Biden's cornerstone fiscal stimulus initiatives and the onrushing debt ceiling issue as the US government's financial year ends this Thursday. We also have the...
Market Quick Take – September 27, 2021
US equity markets finished last week on a strong note and are up overnight to start the week, although a fresh rally attempt in Chinese markets is showing signs of stumbling in later trading. Elsewhere, the Euro is trading sideways in the wake of the German election, which saw the...
Machines Made Monday’s Sell-Off Worse
It shows in the chart below that computers now manage more money in the stock market than people do: (Click here to view larger image.)
“Follow the Rules… or Get Out”
In 2010, the first dip after the bear market low came after a nine-month rally.
WCU: Energy surge drives renewed focus on inflation
The commodity sector found a fresh bid this past week as the intense and potentially price-negative focus on China Evergrande Group, and its ability to service its debt, faded. While industrial metals recovered on the fading China focus, a fresh spike in bond yields together with a firmer dollar hurt...
FX Update: Long yields suddenly make their presence felt again.
The market tried to slip back into full risk-on mode yesterday, but a huge rise in US treasury yields and sympathetic moves elsewhere at the long end of the curve reminds us how quickly the yield question can steal the spotlight when they are on the move. Next week looks...
The Bank of England wakes up bond bears around the globe, and benchmark yields break key resistance levels
Yesterday's BOE's hawkish tilt intimates that inflation is beginning to force central banks' hands into tighter monetary policies. The bond market is yet not pricing central banks' aggressive twists, making it vulnerable to abrupt selloffs. In the US, real rates continue to rise as breakeven rates remain stable. If this...
Nike warns of margin pressure; Evergrande silence spooks
Nike posted strong Q1 earnings last night but revenue came in a bit lower and the sports retailer warned of margin pressure. Equities are turning lower today as Evergrande silence spooks investors. Nike has seen a phenomenal rebound in its business from the lows during the pandemic. Revenue in Q1...