Economic Updates
US stocks tumble, USD rallies as Fed hawks and China protests sour risk appetite
Stocks were sold globally in Mondays session as risk appetite took a hit on civil unrest and increasing Covid cases in China dashing re-opening hopes. Adding to this was the reset of the “Fed Pivot” narrative with a quartet of Fed governors throwing cold water on that idea, re-iterating the Fed was in for the long haul in their quest to tame in...
The Week Ahead – US employment and inflation figures take centre stage
After coming off a fairly quiet, US holiday shortened week, traders will have a plethora of scheduled news to digest as the market continues to swing from risk-on to risk-off as it tries to predict what the Federal Reserves next moves will be. Equity markets drifted up, the US dollar drifted down as a resilient US economy and a dovish Fed minute...
What is an Economic Bubble and how to identify it?
Economic Bubbles are highly damaging phenomena’s that occur in financial systems that can cause a great deal of loss and pain to investors and traders. It is important that traders can identify the signs of a Bubble to both capitalise on opportunities and protect against the risk they pose. What is a Bub...
US stocks continue rally on ugly PMI figures and dovish FOMC minutes
US indices finished another session up after a wild ride as the “bad news is good news” narrative saw a steep rally after disappointing services and manufacturing PMI’s were released, then sold off into the European close only to rally steeply again as what was considered dovish FOMC minutes were released late in the session. All major indice...
Stocks, commodities and cryptos bounce, USD dips as risk-on returns
Another low volatility, quiet news day saw risk assets reverse Monday’s price action with US equities steadily rising throughout the session on lack of any obvious catalyst. Tech outperformed on the improved risk outlook with global risk appetite seemingly unperturbed by the continued ramp-up of Chinese COVID restrictions. The US dollar so...
Stocks and Crypto down, Oil dumps and pumps as market goes risk off amid China COVID woes
US equities finished with modest losses in Mondays session of a holiday shortened week in a low volatility session. The Dow Jones dropping 45.42 points or -0.13%, the more risk sensitive NASDAQ underperforming finishing down 121.55 points or 1.09%. Scheduled news flow was light with only scheduled speeches from Fed voting members Daly and Me...
Markets continue to be uncertain as choppy conditions continue
Markets continue to be uncertain as choppy conditions continue It was another mixed bag for the equity market last week as traders and investors tried to make sense of the current rally. With the indices seemingly pausing from their rally the market is still yet to determine if this current momentum is a true reversal and a sign of a potenti...
Stocks drop, yields up as Fed hawks bash pivot hopes
US equities declined modestly in Thursdays session futures were pointing to a steeper decline after Voting Fed member Bullard dampened hopes of a Fed “pivot” anytime soon, re-iterating the Feds determination to see inflation lower and downplaying one soft inflation report. Stocks did recover during the session though as the “bad news i...
Australian employment figures beat forecast – Rates markets and AUD reaction
Australian October employment figures released at 11:30 AEDST handily beat expectations with 32.2k jobs added for the month (15k expected), the unemployment rate also unexpectedly fell to 3.4% when it was expected to be unchanged at 3.5%. Coupled with yesterdays beat in the Wage Price index which showed wages increased 1% in Q3 paints an optimis...
US equities rally on softer PPI figure though upside capped on hawkish Fed rhetoric and geopolitics
US markets rallied in a choppy session after a softer Producer inflation figure mirrored the Consumer inflation figure from last week, giving investors optimism that US inflation may have peaked. Gains were tempered though with Fed voting members Barr and Harker both made hawkish comments regarding the Feds fight against inflation and reports of a ...
US markets break winning streak after post CPI exuberance, cryptos down again
The US equity post CPI rally of last week ran out of steam in Mondays session as consumer inflation expectations rose and mixed messages from Federal Reserve members saw a choppy first half of the session only to see a steep decline into the close with the Dow Jones ultimately finishing down 211 points (-0.63%) Futures opened Monday with a gap d...
Soft CPI figure sees Stocks, Bonds and Gold soar as the USD and yields collapse
Risk on was definitely back on in Thursdays US session after a softer than expected October Core CPI print, coming in at 0.3% vs the expected 0.5%, combined with broadly less-hawkish comments from Federal Reserve members Daly, Logan and Harker sparked the biggest rally in US equities since April 2020. The rally was broad with all major US inde...
US equities rise ahead of Midterm results in choppy session as Crypto craters
US equities got off to flying start with reports of possible peace talks between Russia and Ukraine and a softening in the rate environment saw solid gains across the major indices for the first half of the session. Chaos in the Crypto market then hit dragging down stocks before a bounce off technical levels saw the Dow Jones still finish up over 1...
The Week Ahead – US Mid-terms set stage for another volatile week
Another week done, another roller coaster for equity and risk markets as the bulls and the bears battled to take control of the narrative in a data rich week. Markets pumped on what was taken initially as a dovish FOMC statement, only to dump as Fed chair Jerome Powell threw cold water on that idea during his presser, then pumped again on Friday...
US stocks dump in choppy session after FOMC decision
US equites had a wild ride over night, A strong ADP jobs report was indexes track lower at the start of the session (Good news is bad news!) only to have a euphoric lift after the FOMC statement which traders took as a dovish pivot from the Fed, only to have the party ruined by Jerome Powell’s press conference where he poured cold water on that i...