US Open – Possibly another buying opportunity is upon us, UK Chancellor quits, Oil’s tentative bottom, Metals diverge on virus spike, LATAM declines

Feb 13 15:02 2020 Print This Article

Wall Street seems to be buying the dip again.  Last night, risk aversion returned on news that China reported a sizable jump in new coronavirus cases.  The shock re-acceleration in number of cases delivered a blow to many optimistic outlooks that were targeting the virus to peak in a couple more weeks. 

Investors still want to buy any weakness as hopes are high China will have a strong rebound once this virus has peaked. Global central bank stimulus is still going to power these markets, but if China’s slowdown extends into the second quarter, stocks will struggle as the Chinese V-shaped recovery will likely turn into a U-shaped one.

Treasuries

Treasury yields are dropping as the flight to safety has money come into the backend of the curve.  The Treasury 10-year yield came off its lows after mixed inflation data confirms Wall Street’s belief that the Fed is not making moves anytime soon.  The annual pace came in hotter than expected at 2.5%, up from the prior 2.3%, but we will probably need to see a 3.0% print before we see inflation come into the PCE Core reading, which is Fed’s preferred reading on prices. 

Read More

About Article Author

Market Pulse

Established in 2006, MarketPulse is a free news site that provides full-time coverage of the world's largest financial markets, focusing on forex, commodities, and global indices research and analysis. Armed with a global team of securities analysts and strategists, Market Pulse provides timely, accurate, and informative research on major macroeconomic trends, technical analysis, and worldwide events that impact different asset classes and investors.

Related Items

5i Stock Screener: Reliable companies for shareholders during a crisis

Shareholder yield is a great way to measure how well companies give back to shareholders and is the sum of both dividend and buyback yield. Companies that repurchase shares in addition to paying a stable dividend also give a few positive signals, particularly during these tough times. ...

Precipitate Gold $PRG.V $PREIF Adds Major Barrick Gold $GOLD as Shareholder

Precipitate Gold Corp. is a mineral exploration company focused on exploring and advancing its mineral property interests in the Pueblo Viejo Mining Camp and Tireo Gold Trend of the Dominican Republic. Precipitate is also actively evaluating additional high-impact property acquisitions with the pot ...

SPX -- Scaling Out Of This Rally

Even in a fully traumatic longer term crash, The initial rally can cut the first leg of thedecline by half. That would be around 2800 on the SPX . The 2800 level also would equatewth fair value under fully normal conditions. We are far from normal times, so it is time forme to exit and concentrate o ...

Commodity Tracker: 4 charts to watch this week

A recovery in Chinese independent refiners’ oil imports tops this week’s pick of trends in energy and raw materials markets. EU carbon markets, the relationship between US rig counts and tubular steel prices, and LNG supply to Europe are also on the agenda. 1. Saudi crude supply to Chinese ind ...

Biggest Gold Asset in S. America Got New CEO with Great M&A Record

During this quarantine I have been blessed to speak to some extremely successful entrepreneurs in the mining sector.  It has been during this pandemic crisis that opportunities arise for astute investors who can think quickly.   Many smart investors who left the mining sector to real estate, cann ...

Don’t write an obituary for shipping’s dirtiest fuel

High sulfur fuel oil, once the cheap staple diet of the shipping industry, has been usurped by an abundance of low-cost, premium quality bunker fuel. That’s led to seafarers freezing orders for equipment to remove the sulfur from HSFO and maximizing compliant fuels. But don’t write off shipping ...

Market Update: Investors Optimistic as Global Economies Reopen

The quickest bear market in the history of the US S&P 500 turned into the best 50-day bull market rally in history in May. By market close on June 3, 2020, the S&P 500 Index was up 37.7% from its March 23, 2020 low. This bullish investor sentiment has been based on the continued decline in new coro ...

COVID-19: The ultimate identity politics?

Political Action Human beings always aspire to be part of something larger. There's the family but it's limited, they want a level beyond that. So they find other entities to feel they belong to, like nations, religions, movements or generations. Very often -- most of the time -- those involve ...

Gold About To Breakout $1800

It was 2008 and we were in the middle of the Great Financial Crisis.  At the time I was working as a math teacher with a small family.  I was already investing in junior gold miners for 10 years before I took the plunge to go full time into becoming a mining entrepreneur leaving a secured tenure ...