European equity markets are sold out across the board, as global equity markets came under pressure from rising yields and heightened expectations, hitting technology stocks in particular. In this environment, strong data releases only add pressure rather than lift sentiment on stocks and the GER30 and UK100 are currently down -1.2% and -0.8% respectively. Core EGBs were little changed, with the 10-year Bund yield falling -0.4 basis points to -0.033% after the paper erased earlier losses. the German 10-year-old clearly preparing to break negative territory for first time since early 2019, but not quite as far as it seems. the […]

Equity markets fell (Nasdaq -2.6% while VIX rose +5.22%). Financial and pharmaceutical companies led the slide, U.S. dollar more firmly supported by high Income – the main market driver. US 10-year bonds 1.85%, German 10-year highs to May 2019 as UK and German inflation hit 30-year highs. oil higher again, gold keeps circling. The pressure on the British Prime Minister is growing. U.S. DOLLAR (USDIndex 95.65) holds on to profits. US returns Up 10 years up – closed at 1.865% & acts at 1.883%. shares – US500 -85 (-1.84%) 4577 (GS -6.97%, BAC -3.44%, FB -4.0%, SONY -7.0%, Nikkei -0.27% […]

The weakest start to the new year since 2009 for the US Treasury market continues to undermine equities and support the USD as yields continue to rise.   The Market Week – January week 3 The markets are now in focus inflation and the central banks. Treasuries continue to make a stormy start to 2022 and the move in yields is the main driver of market sentiment. The equity markets were rocked by the expected rise in interest rates and a disappointing start to the Q4 reporting season. CPI rates have hit 30-year highs. Employment growth is also making headlines; […]

USDCAD Canada’s CPI got on 4.8% Pace in December from the growth rate of 4.7% in November. CPI fell 0.1% after gaining 0.2% in November. The average of the three core CPI measures of the BoC was 2.9% in December compared to 2.8% in November. Key annualized trimmed CPI reading rose 3.7% from expectations of an “unchanged” reading at 3.4%. Prices increased year-on-year for all eight major components in December. Transportation and accommodation prices were the main contributors to CPI growth. Year-on-year, prices for services (+3.4%) increased more in December than in November (+2.9%). Goods prices (+6.8%) increased slightly more […]

Equity markets fell again (Nasdaq -1.15%) Financial and technology companies led the decline, U.S. dollar slipped like Yields – slides from highs, oil higher again, gold The day’s asset rose to $1842, helped by more hot inflation data from Germany, UK and Canada and strong US housing data. China cut mortgage rates and lifted Asian markets (Nikkei +1.11%). Lagarde: The ECB has reasons NOT to act as quickly as the FED. Biden reinforced rhetoric about Russia and Ukraine, in which he predicted Russia would “make a move.” Johnson is staying in the UK for the time being. U.S. DOLLAR (USDIndex […]

GBPUSD, daily GBPUSD raised 1.3636 during the European morning but remains in yesterday’s range and tested the key 1.3600 even. The rise in yields has fizzled out for now and with Treasuries outperforming core European markets, the dollar struggled during the European AM. The fact that British Prime Minister Johnson has managed to hold on despite the heated debate over “Partygate” and calls for his resignation may have helped Sterling somewhat this morning, but there still appear to be attempts to garner sufficient support for a no-confidence vote, z now the pound is finding support and has also risen against […]

Microsoft Microsoft, the second largest company on Wall Street by market capitalization (after Apple) and developer of the Windows operating system and office suite, is expected to report its results for the quarter ended December 2021 Tuesday, January 25th, after market close. Zacks forecast sales for the quarter at $50.32 billion, above that $43.08 billion in the same period last year (up 16.82%), while the return per share is expected $2.29, over $2.03 in the same quarter of the previous year (an increase of 12.81%.) For revenue by product line for the upcoming quarter Amy Hood Microsoft Chief Financial Officer […]

Stock markets fell again (Nasdaq -1.3%) Tech companies led the slide, (peloton -24%, Netflix -18% post results. U.S. dollar solidified as Yields & Oil submerged, gold held on to the profits. The markets are nervous and Risk aversion has chosen up as investors eye shaky earnings and dwindling confidence, with rising tensions over Ukraine adding to geopolitical tensions. US Weekly Claims reached a 3-month high, EZ inflation was an ATH and North Korea said it could be resumed tests its nuclear arsenal. Asian markets and EUR & CHF lower (AUSJPY -0.62%) ASX 200 (-1.2%), Nike 225 (-1.8%). U.S. DOLLAR (USDIndex […]

The BoC and FED Policy meetings and press briefings are central bank highlights this week. Rising inflation and slowing economic growth from robust Q4 pace could be exacerbated by Omicron proliferation and renewed mitigation measures, not to mention the impact of the move away from monetary easing and fiscal support. How central banks deal with this dynamic will keep markets jittery. These factors will continue to keep markets volatile next week. Additionally, the big dose of global data releases includes next week global PMIs, Australian CPI, US GDP and PCE.   Monday – January 24, 2022 Services & Manufacturing PMI […]