“We believe that central banks would be willing to let the markets correct lower and would act only to avoid a panic that could affect the recovery and the inflation outlook.”
Category: central banks
Global Stocks Are Happy. Gold Is Sad. China! I Found Some Inflation In Norway.
Well, I’d say “it’s quiet out there,” but that’s cliché. So how about this: “ain’t
O, Canada! China?! Yellen Yellin’: Full Week Ahead Preview
Ok, well this should be an interesting week. We’ll get the BoC, which will make
If This Is The Big One, ‘You’re Going To Have To See It Here Too’…
“Do as we say in rates and do as we do in credit” – or something.
‘Rout,’ ‘Tantrum,’ ‘Debacle,’: One Trader Says ‘This Is All A Bunch Of Tripe’
“And we have newspaper people on the payroll, don’t we, Tom?â€
Yen, Pound Nosedive, BoJ Reminds You Who’s In Charge Here
Right, so first thing Thursday morning we noted that 10Y JGB yields had risen to
Trader: ‘Stocks Might Even Go Down. Stranger Things Have Happened’
“So the question you need to be asking isn’t whether something is mispriced, but what are the catalysts that will convince the market that it’s time to recognize it as so.”
Albert Edwards, FT’s Katie Martin Take On The Mighty ‘Rikshog’
“But a combination of aggressive QE and -0.5% interest rates has not just resulted in a very robust economy, but a totally overheated and out of control housing bubble – one which makes Australian and Canada house price bubbles look merely pedestrian!”
Nomura: 3 Ways The ‘Goldilocks’ Market Could End (Now Cue The 3 Bears)
“Markets have been pricing in a Goldilocks scenario: benign growth, low inflation and slow central banks and therefore high valuations and low implied volatility.”
Trader: ‘Risk Assets Are Ripe For A Correction’ And This Gives Them An Excuse
“Many risk assets are ripe for a correction from elevated levels and North Korea’s latest provocation provides sufficient excuse for traders to act.”
El-Erian: 6 “Key Things You Need To Know” About Your Market “Accomplishments”
“Record levels for several widely followed country indexes occurred in the context of notably muted volatility, adding to the sense of investor comfort and accomplishment.”
Chart Of The Day: Endangered Species
I remember a time, not too long ago, when tallying up the total number of global rate cuts was a full-time job…
‘The Ultimate Negative Feedback Loop’
“With asset prices so well correlated to financial conditions now, being too hawkish – and instigating market tantrums – creates the ultimate negative feedback loop.”
Jobs Report, Chilled Urine, And Kashkari’s Rib Roast: Full Week Ahead Preview
If you were following along last week, then you already know what to look for
This Could End With “Large Retail Investor Outflows From Bond ETFs”
If you are a credit investor, you should be worried right about now. For one
“Where It All Goes Wrong”
” Ultimately it all depends on inflation and growth but whether or not these are structurally driven or endogenous to the Fed’s and other central banks policy rhetoric remains to be seen. We remain skeptical!”
And The “Biggest Risk” To Credit Markets Is…
“Oil can be an issue this summer if prices fall below $40/bbl, but we are more worried about…”
Nedbank: “The Risk-On Phase Is Very Close To Being Over”
“The Fed might be the trigger for tighter financial conditions, but not the cause (as we believe the risk-on phase is very close to being over).”
Trader: “Black Swan Events Happen A Lot More Often Than They’re Supposed To”
“The Fed has enjoyed free-ridership of doing so while everyone else is still printing away. This has meant that financial market conditions have taken it wholly in stride. To assert that this will be the case when everyone else join is making a big assumption about the efficacy of the cure.”
Stocks Fall Across The Globe As Hawkish Central Banks, Washington Jitters Roil Risk
Well, the overnight action was predictable under the circumstances, but it’s nevertheless unnerving for anyone
Euro Surges On Draghi’s “Three Messages,” Dollar Eyes Janet, Yuan “Suddenly” Jumps
Boy, I’ll tell you what, if you’re a central banker and you’re going to say
Is A “Stubbornly Hawkish” Fed Trying To Fucking Kill Us, Or What?
“Yet, unfazed by the roll-over in activity and inflation and lower growth expectations, the Fed and the PBOC are sticking to a stubbornly hawkish path. Tighter money at a time of weaker activity poses deflationary risks and a spill-over into the real economy.”
3 C’s: Crude, Carry, CPI And Your Full Week Ahead Preview
Ok, so it’s Sunday which, as we’re fond of reminding you, means that tomorrow will be Monday – right up until Trump does something that takes the whole of idea of there being a “tomorrow” off the table…
Barclays Sarcastically Asks: “What Could Possibly Go Wrong?”
“The reality is that there are many risks on the horizon as we write”…
The Big 3’s Exit Plan In 1 “Easy” Flowchart
“It’s so simple”…
“Hakuna Matata”?
“In our opinion, this is not dangerous market complacency but a reflection of an abnormally tranquil macro environment, with a benign economic outlook, very supportive financial conditions, and lower political risks”…
Trader: “You Really Shouldn’t Make It Up As You Go Along”
“They don’t have to be governed only by the lowest common denominator. Nor forever ignore the negative externalities of oppressively low global rates and how they further suppress yields and encourage profligate risk-taking.”
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