Investors Remain on Edge

Aug 13 10:08 2019 Print This Article

Overview:  The confrontation in Hong Kong and the fallout from the Argentine primary over the weekend join concerns the conflict between the two largest economies and slower growth to force the animal spirits into hibernation.  Global equities remain under pressure.  Japan's Topix joined several other markets in the region to have given up its year-to-date gain.  The MSCI Emerging Markets equity index is not from doing the same.  European shares are faring better, and with today's roughly 0.6% loss, the Dow Jones Stoxx 600 is up almost 9.2% this year.  US shares are trading lower, which if sustained, would leave the S&P 500 up just shy of 15%.  Bond yields are lower, and several European sovereign bond yields are at new record lows.  The first European corporate 10-year bond (Nestle) yield slipped into negative territory.  Italy's vote of confidence looks more likely for next week, and this is allowing Italian bonds to stabilize after yields surged in recent days.  China's 10-year yield briefly dipped below 3% for the first time in three years.  The US 30-year yield is slipping closer to the record low near 2.08%.  The US dollar is firm against most of the world's currencies, with the notable exception of the yen and Australian dollar.

Read More

About Article Author

Marc to Market

Marc Chandler has been covering the global capital markets in one fashion or another for more than 25 years, working at economic consulting firms and global investment banks. Chandler attended North Central College for undergraduate work, where he majored in political science and the humanities. He holds master's degrees from Northern Illinois University and University of Pittsburgh in American History and International Political Economy. Currently Chandler teaches at New York University Center for Global Affairs, where he is an associate professor. A prolific writer and speaker he appears regularly in the press and has spoken for, and is an honorary fellow of, the Foreign Policy Association. In addition to being quoted in the financial press daily, Chandler has been published in the Financial Times, Foreign Affairs, and the Washington Post. In 2009, Chandler was named a Business Visionary by Forbes. In 2009, his book, Making Sense of the Dollar, was published by Bloomberg Press and received a Bronze Award from Independent Publishers.

Related Items

So Are We All MMTists Now?

Larry Summers attracted a great deal of attention with arguments that post-Keynesian theories ought to be taken into account, and the ability of central banks to stimulate the economy are limited. One could argue that the zeitgeist is shifting in the direction of Modern Monetary Theory (MMT): the ...

Prices: A Week in a Day

The pattern has been repeated.  The Federal Reserve, to which he appointed the Chair, and several Governors does not move as quickly as the President wants on monetary policy. He responds by escalating the trade tension, delivering the independent central bank a fait accompli.  Increasing the t ...

TD.PF.M & CM.PR.Y: Still Expensive

Assiduous Reader coolmesh asked on the August 20 post: I’ve been watching TD.PF.M getting hammered the last four weeks. Good rate, good reset rate and good quality company. Any thoughts on what’s going there? TD.PF.M is a FixedReset 5.10%+356, NVCC, that commenced trading 2019-6-4 after being a ...

The Week Ahead is not about the Week Ahead

It's the last week of August.  Several economic reports will be released in the coming days. They include the US deflator of consumer expenditures that the Federal Reserve targets, China's PMI, and the eurozone's preliminary August CPI.  It is not that the data do not matter, but investors re ...

Market has Second Thoughts on Magnitude of Fed Cuts Ahead of Powell

Overview:  Powell speech at Jackson Hole stands before the weekend.  Equities in Asia and Europe are finishing the week on a firm tone.  Most markets in the Asia Pacific region closed higher today, and the MSCI Asia Pacific Index snapped a four-week slide.  European bourses are edging highe ...

Gold soars 2% after Powell speech, Trump tweets

Gold surged 2% on Friday as investors interpreted U.S. Federal Reserve Chair Jerome Powell’s speech as leaning towards a dovish monetary policy stance and President Donald Trump’s latest comments exacerbated trade tensions with China. Spot gold rose 1.9% at $1,527.20 an ounce, shaking off sligh ...

Zenabis Global’s stock is primed for success, GMP Securities says

Although the new capital structure adds risk to the name, GMP Securities analyst Justin Keywood has faith in Canadian cannabis company Zenabis Global (Zenabis Global’s Stock Quote, Chart, News TSX:ZENA) and its ability to execute. The analyst issued a corporate update to clients on Thursday, reaf ...

The moment

Elke “Wieselblitz” Vogelsang photo . By coincidence, not design (honest), the last two posts told you not to set your pants on fire, remain calm, go for a tummy rub and be a long-term thinker instead of a timorous chicken. How’s that for mixed images? But you know what I mean. Just chill. Es ...

A Wobbly World - Market Review

Another week, another lower close. With four weeks of lower closes, the trend continues to be down. While we have made higher lows the last two weeks, it now appears that the early August low will be tested. One of the defining features of corrections/bear markets is an increase in the average true ...