Ahead of today's Thanksgiving holiday, the US equity market led by technology and bubble stocks saw a relief rally in response to a lower than feared PCE core inflation. However, as we note today a big change has happened inside the Fed with their focus switching from employment to combatting...
Market Quick Take – November 25, 2021
Asian stocks and US equity futures traded higher overnight as traders weighed Chinese efforts to support its economy, and after solid US economic data combined with persistent price pressures added to market concerns, the Fed may speed up its removal of policy support to curb inflation. In Treasuries, shorter maturity...
Beware: the bond market is signalling troubles ahead
It's time to turn cautious as the bond market is signalling a swift rise in interest rates amid strong inflationary pressures and more aggressive monetary policies. So far, risky assets have suffered due to a rise in interest rates. However, things can quickly turn for the wort as corporate spreads...
Black Friday can squeeze supply chains and challenge Christmas
Black Friday is upon us and with the current pressure on supply chains the shopping frenzy may make it difficult for Christmas presents to reach stores in time for the Holidays.‘Tis the season for shopping. While Thanksgiving still is primarily a tradition for Americans and people who are into American...
Danish equities are feeling the heat from interest rates
Several equity markets with high equity valuations have this week felt the heat from rising interest rates and market expectations of rate hikes. We take a look at which markets have the most interest rate sensitivity.In yesterday’s equity note, we showed how Nasdaq 100 and STOXX 600 are the yin...
FX Update: USD remains firm, RBNZ taps brakes on expectations.
The US dollar remains firm after the news of Fed Chair Powell getting the nod for a second term on Monday, but a more aggressive extension of its recent strength is avoided as US yield rises were tempered yesterday. Elsewhere, a less hawkish than expected RBNZ saw the kiwi sharply...
Metals under pressure but finding technical support. Copper set for bounce
Across the board Metals have been under pressure lately trying to find technical support. Copper seems most promising in a strong reboundGold XAUUSD broke above the strong resistance at around $/oz 1.834 with ease but ran out of steam before reaching next strong resistance at around $/oz 1.910. $/oz 1.875...
The unbearable sensitivity to rising yields
Today we try to quantify and illustrate the equity markets most sensitive to rises in long yields, i.e., duration sensitivity, noting particularly chunky declines in the most duration sensitive markets yesterday. As well, a look at the "buy the fact" reaction to the US release of strategic oil reserves, key...
Market Quick Take – November 24, 2021
US equity markets bounced back from an extension of the sell-off from the highs of Monday, perhaps in part as a firm US 7-year treasury auction saw yields settling back lower, just after that particular benchmark had notched a new high yield for the cycle. Today sees a flurry of...
Thanksgiving bull market called off?
Yesterday Sellers took control after Buyers had lifted market to new highs forming Top and Reversal patternsMaybe the Thanksgiving week will not be so joyful on the Stock market this year. Yesterday the US Stock market started out bright only for Sellers to take control shortly after the opening bell....