As one reader put it earlier today, “is just being open for trading” a good enough reason for stocks to rally?
“I can already hear the guffaws from all my hard money readers. The last thing the government needs to do is spend more money is what they will say. We need to save more, spend less, and tighten our belts. Well, that has been tried.”
Ok, get ready.
For now, the fiscal-chaos-can has been kicked, Harvey is behind us, and North Korea’s latest nuclear test has come and gone.
But dead ahead is Irma’s landfall in Florida, North Korea’s “founding day” (which by most accounts will be “celebrated” with an ICBM launch), and of course, more gridlock in D.C. We are, figuratively and literally, in the eye of the storm on Friday.
Just one more day of this before the weekend, when we’ll all get to put up the plywood and hide in the basement as Irma turns Florida into Atlantis and Kim turns Tokyo into Dresden…
Seemingly unwilling to risk any further damage to his already low approval ratings, Trump ultimately decided to go ahead and take the drama out of the debt ceiling debate, striking a deal with Democrats – much to chagrin of the GOP. We’ve now got a new lease on life – until December. And even that…
This wasn’t entirely unexpected given the hot economic data that’s been coming in fast and furious over the past couple of months, but it is extremely notable coming after the July hike.
To be sure, whatever you thought was going to dominate the news flow in the week ahead is probably going to take a backseat to North Korea, for obvious reasons.
But North Korea isn’t the only thing on traders’ minds this week. Not by a long shot.
Maybe you noticed.
So for the third week in a row we get to say “congratulations Canada!”
Now just hope that epic housing bubble doesn’t burst.
Y/Y, Canada’s economy grew by 4.6% in the 12 months through the end of May. That’s the highest growth rate since the millennium!
And thus ends one of the most painful chapters in the history of spec positions gone horribly wrong.
Ok, well this should be an interesting week. We’ll get the BoC, which will make Bloomberg’s Luke Kawa happy because it means Canada will be in the spotlight for once. He’s got some fun Canada-themed socks we imagine he might wear on Wednesday. “The recent avalanche of hawkish messages from the BoC, as well as…
“I find it funny how with all this printing, market participants are surprised when the price of assets rise.”
SocGen’s Kit Juckes probably summed up the overnight session best: Overnight currency drivers have been a pretty eclectic collection of unrelated developments. That sounds like it could be an ill-advised sequel to “A Series Of Unfortunate Events“: “A Pretty Eclectic Collection Of Unrelated Developments.” First there’s the kiwi which collapsed. That comes courtesy of the…
“Doesn’t really help us that much, except to note that maybe all this other analysis is bullshit, and instead we should just focus on crude oil and interest rates.”