What A Difference.

What a difference a day makes. Yesterday stocks were sold on earnings fears and trade. Today stocks rallied because investors think the Fed will ease rates at the end of the month and may be inclined to ease further. And why they would think that was because several Fed members have said so. John Williams… Read More

He’s done it again.

Just in case we had forgotten that the U.S. was involved in a trade dispute with China, Trump reminded investors that the dispute was far from finished. Read More

On your mark.

Markets are now factoring in a US rate cut as a Fed insurance policy. Earnings are expected to be weak in the third quarter and the belief is that the rate cut will stop a significant slowdown. Read More

High, high, higher.

The key to the gains is that the Fed has said rates are not rising anytime soon. Other central banks are also making similar noises. Fed futures are implying a 25 bp cut in July and an easing of almost 70bp for 2019. Read More

It’s what said.

A new day a new record for the S&P 500. What more is there to say?   And we can all thank Powell. Powell’s comment has left the U.S. market in no doubt that a rate cut is due and due shortly. Read More

What’s said.

Everything hinges on Powell and what Jerome says later this week. Stocks were higher and investors are lined up as we wait for this week’s central bank gabfest. Bonds were relatively quiet on the day. Read More

Reality bites.

Returning from the 4 July break, investors have a bit to think about. Trade news. Jobs report. The looming testimony by Powell to Congress. Traders are now banking on a rate cut of smaller proportions. Read More

Start the engines.

Is it time to reset market view? Maybe. Markets are now set for a period of volatility should they wish to follow every comment Trump makes. Trade is definitely being affected and with it, markets. Read More

The sugar hit.

The sugar hit is an easing or rather an expected easing and the Fed is now being bullied into a corner by stocks, bonds and no doubt a dissatisfied president who has been tweeting for a rate cut. Read More

In his head.

Right now China must be thinking, what is next? How do you meet a deadline when the only person who knows is Trump? In a somewhat fragile market, optimism is on the wane.  Read More