July 26, 2019
Stocks and bonds prices fell in unison, not by much but by enough to unsettle their respective markets. Draghi set the markets alight by not changing rates.
July 25, 2019
Stocks in general were up on the day and chip shares sent the S&P 500 and the Nasdaq Composite to new highs.
July 24, 2019
U.S. and China trade talks have recommenced. Some strong earnings results set the tone for stocks. Treasuries reacted to the trade news by selling off a few basis points.
July 23, 2019
China appears to be holding out an olive branch to the U.S. in an attempt to get some tariff relief and has sweetened the deal. For equity markets this is a boon and for other economies it is a welcome sign of perhaps an improving trade outlook.
July 22, 2019
There is something in the air at present and it reeks of tensions.The equity market slipped on rising geopolitical tensions and the possibility that the Fed may only cut by 25bp. Interestingly bond traders moved away from bets that the Fed would slash rates by 50bp.
July 19, 2019
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
July 17, 2019
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.
July 16, 2019
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.
July 15, 2019
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.