I Know You Want To, But Don’t Ignore This Out-Of-Cycle Wednesday Rate Hike
Lost in the shuffle, but perhaps unjustifiably so.
Lost in the shuffle, but perhaps unjustifiably so.
No shortage of entertainment on Wednesday.
“There are many ‘canaries’ that are starting to ‘fall over’ – hence we are deeply concerned about current market conditions. “
Keep calm and take (some more) risk.
Ok, well all eyes will be on the U.S. in the week ahead.
Listen, you people are concerned about 10Y yields, and that’s fine. After all, we blew threw the February highs this week on the way to the “dreaded” 3% “pain threshold” and while there were no swarms of locusts and no Pazuzu sightings (that I’m aware of), there are still concerns that the higher we go, the closer we get to a situation characterized by “diversification desperation” or, more simply, a scenario where bonds and stocks selloff in tandem.
We gotta get out of this place.
“In a word, honest bond yields will knock the stuffings out of the mainstream fairy tale that passes for economic and financial reality.”
Say your prayers.
U.S. March Nonfarm Payrolls Rose 103k; Unemp. Rate at 4.1%
Stellar day!
“In the last week of January, as equities went on yet another run, a client who had been waiting to buy the dip called us with an exasperated query.”
As a reminder, they’re prone to doing this.
The market’s verdict was as follows.
In terms of news flow on Tuesday, everything took a backseat to Facebook and the worsening Cambridge Analytica scandal, which is spiraling rapidly out of control.
Here we are a day on from some Facebook-induced market mayhem and it looks like everyone is in wait-and-see mode. Who can blame them?
This should be all kinds of amusing.
Is the marginal equity buyer back?
Sustainable rally or dead cat?
“Mostly reassuring.”
In any event, here is some of the early analyst commentary that will of course continue to trickle in throughout the day from whoever hasn’t already headed out to the bar (which is where I would have been by now on a payrolls Friday were this two years ago).
U.S. Feb. Nonfarm Payrolls Rose 313k
Avg. hourly earnings Y/y 2.6%
Again, those highlighted bits are a clear effort to massage the message – they’re trying to preserve the Goldilocks narrative by telegraphing a still-subdued outlook for inflation while underscoring the near-term upbeat growth picture.
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