“With French political risk significantly reduced (even if there’s still a two-week second round campaign to negotiate), an improving global economy, steadier oil prices, and most of all, range-bound US yields and a lack of fear of rapid Fed tightening, investors see few demons and are off in search of yield.”
Author: therealheisenberg
Trader: “Ok, So What Do We Do Now?”
“What we’ve had so far this week, I know it’s only Tuesday, has been a repricing without the benefit of meaningful price discovery along the way. Gaps during the Asia-Pacific opening are one thing. Ones followed by flat-lined price action suggest order books emptied followed by “So what do we do now?†And if there isn’t a quick follow-through in momentum, the next question will be “What have we done?â€
Key Calls (Tuesday): Upgrades, Downgrades & Initiations
Are your stocks on the list?
Is Steve Bannon For Real? “When I Knew Him, He Just Wanted To Make A Buck”
“These days, Bannon is a dishevelled presence in the Oval Office, but he cut a different figure in Beverly Hills, where he looked the part of a Hollywood executive—fast-talking, smartly dressed, aggressively fit, carrying himself with what one former colleague described as an “alpha swagger.â€
As Vol “Re-Enters The Doldrums,” Goldman Weighs In
“Around major political events over the past year implied vol has usually spiked close to the event given late positioning, as being long vol has been a negative carry trade. In the week after these events vol has fallen materially as the events have turned out to be less negative for markets than feared.”
Marine Le Pen Isn’t A Nazi – And She’ll Prove It By Stepping Down As FN Leader
“Tonight, I am no longer the president of the National Front. I am the presidential candidate.”
Goldman: Globalization Will Prevail, Macron To Beat Le Pen Handily
“Following the first-round outcome, the Le Pen camp have claimed that the second round of the election will represent a choice between Mr. Macron’s pro-globalisation agenda and their candidates more protectionist stance. Ms. Le Pen proposes the cancellation of existing free-trade agreements and opposes future ones.”
Monday Humor: Connect The Dots
“Muhahaha”
Warning: “Cliches May Be Boring,” But Nature Does “Abhor A Vacuum”
“Given the large number of gaps that have developed over the weekend because of the French election, traders will no doubt wonder how seriously to take the traditional warning.”
“A Small Spark” Could Trigger An EM Correction, But For Now: “No Bears Allowed”
“Despite the 16 weeks of inflows into EM debt, positioning is not that extreme, as investors have been reducing risk in last few days ahead of binary events. Market participants agree that valuations are stretched but carry seems to be the only game in town.”
One Bank Asks: “Who Will Burst This Bubble?”
“We have no political expertise but nonetheless recognise the palpable relief but we also understand the real problem for equities worldwide is one of high valuations, high expectations, yet still lacklustre growth and ever worrying and mounting levels of leverage.”
Jeff Sessions Thinks “Nobody Has A Sense Of Humor Anymore” When It Comes To What’s A State
“Why not just call it the state of Hawaii?”
“Of Sharks And Men”: A Reader Weighs In On The Future Of French Politics
“The blow-out personal performance of Mr Melenchon with almost 20% is very similar to the Le Pen vote in the desperation of broad areas of the country – the rural areas who feel abandoned, the suburbs where law and order are in short supply, the South exposed to poorly integrated immigrants.”
Nikki Haley Isn’t “Looking For A Nuke Fight,” But If That’s What Kim Wants, Well Then…
“What we have said from the beginning and what I’ll continue to say is the United States is not looking for a fight so don’t give us a reason to have one.”
Hellz Yeah! European Stocks Explode, US Set To Rally As Market Celebrates Macron
The final tally was Macron 23.75%, Le Pen 21.53% and to say markets are relieved
Mind The “Le Spread” Euphoria
“200-DMA at 45bps could limit further spread compression as oversold conditions warrant corrective unwind.”
Here’s How Wall Street’s Feeling About European Stocks On Monday Morning
So at least for Monday, the verdict is already in on European stocks and how
Trader: “Presto Chango!” All Is (Not) “Right” In The World
“Springtime in Paris can indeed be very enchanting.”
Key Calls (Monday): Upgrades, Downgrades & Initiations
Are your stocks on the list?
Crise: “Enjoy The Party Markets, But Beware The Hangover”
“While today should be a good one for the euro and risky assets, the party may be short-lived; it won’t take long before market focus swings back to the United States and a potential government shutdown at the end of the week.”
Risk-On! S&P Futs Jump, Treasurys Dumped With Yen As Markets Cheer Macron
As tipped by the knee-jerk reaction in EURUSD and EURJPY, the “market-friendly” outcome from the
Here’s Goldman’s Sunday Evening Take On Markets After The French Vote
Were you looking for more coverage on the outcome of the first round of France’s
Euro Soars 3% Against The Yen, Shorts Seen “Reloading”
You probably don’t want to read too much into it because Sunday evening Australasia FX moves aren’t exactly the
Macron, Le Pen Set To Square Off In Second Round
Centrist Macron, far-Right Le Pen advance in what should be a market-friendly outcome.
Euro Surges Out Of The Gate On French Election Result
Up, up and away…
Sunday Humor: Bill Clinton Gets “Bugged”
“Donald Trump isn’t alone”…
Here’s How The French Polls Will Influence Central Banks This Week
“Following a “disruptive†election outcome, however, the market may expect a more accommodative tone from the ECB, and the Riksbank is likely to announce an extension of its QE programme that is due to end in June.”
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