Light Inflation Helps Stocks to Rebound
It appears that the recent market correction may have run its course for now. Yesterday the Dow shrugged off early losses to finish with a 0.8% gain although the NASDAQ finished down 0.4%. With the exception of Tokyo which fell 1.8% overnight, overseas markets have been on the rebound, including gains of 2.5% for Shanghai, […]
Stock Selloff and Energy Rally Continue
Equity investors and cryptocurrency traders continue to react negatively to last week’s stronger than expected US Nonfarm Payrolls report. Signs of strength in the US economy have added to speculation that there could be significantly fewer interest rate cuts in the US this year dampening the easy money speculation that had underpinned 2024 gains in […]
Employment, Earnings and Potential Sanctions Drive Big Market Moves
There have been a number of positive developments this morning, but the market reaction to them in a macro and individual level has been very different. North American job numbers for December showed job creation accelerating. Both US Nonfarm Payrolls (256K vs street 154K and previous 212K) and Canada employment (street 90K vs street 25K […]
Stocks and Bonds Retreat as Treasury Yields Climb; ADP Payrolls Miss
Adding to yesterday’s US index losses of 0.4% to 1.9%, US index futures are down 0.1% to 0.2% this morning. European bourses are in red across the board with the CAC down 1.0%, the FTSE down 0.6% and the Dax down 0.3%. Asia Pacific trading saw the Hang Seng lose 0.9%. The 10-year US treasury […]
Stocks Slip as Treasury Yields Climb
Equity markets in the US were unable to build on Tuesday’s positive momentum, but major indices were able to shrug off early losses to finish the day essentially flat. Today US index futures are down 0.3%-0.4% as investors continue to grapple with the headwind of rising Treasury yields. In Europe today, the FTSE is flat […]
Short Squeeze Subsides as Holiday Trading Begins
Friday’s Triple Witching Day, which had started with a premarket slump, turned into a big rally and short squeeze with major US indices gaining 1.0%-1.2%. Starting today, with many market participants away on holidays or in and out of the office for the next two weeks, trading has quietened down. US index futures are mixed […]
Big Swings From Fed’s “Hawkish Cut” Continue
Yesterday afternoon we saw the worst reaction to a December Fed decision since 2018. The Fed announced a “hawkish cut”, where they cut the Fed funds rate by 0.25% as expected, but signaled in the dot plot of FOMC member forecasts that they are only expecting 2 quarter point rate cuts next year instead of […]
Global Markets Rebound as FOMC Decision Looms
Shrugging off yesterday’s US index losses of 0.3%-0.6%, US index futures are up 0.2%-0.4% this morning. Over in Europe, the FTSE is up 0.1% and the Dax is up 0.2%. Chinese markets are also bouncing back with Hong Kong rising 0.8% and Shanghai gaining 0.6%. Commodities are also picking up today with US Crude Oil […]
Stocks Backtrack Despite Strong Retail Sales
US trading is subdued this morning with index futures trading down 0.3%-0.5%. Even red-hot Broadcom, which soared another 11% yesterday, appears to be slowing down, dipping 0.5% in premarket trading. Over in Europe, the Dax is down 0.2%. The FTSE is down 0.8% on signs of stagflation as employment growth slowed and wage inflation accelerated. […]
Swiss Surprise
A day after the NASDAQ Composite Index reached 20,000 for the first time, US index futures are backsliding a bit this morning with declines of 0.1% to 0.4% in the wake of a disappointing US inflation report. Over in Europe, the FTSE, CAC and Dax are all flat. Asia Pacific markets rallied overnight, as both […]