Morning Market Report
Nice follow on in Asia last night, the lower tbond mkt yields go the moar attractive equity's are for anyone.
This is still confusing to many as it is quite disconnected from most fundamentals(specific to the equity's-think tech stocks.
Of Note-the bank stocks, horrible internals and those are not performing at all but many stocks are even with not so great metrics-thats life
and it does habben that way.
Gold up and over that barrier at $1350 to around $1384(a 6 year high), firmly on the radar of the world for sure.
Some Headlines
U.S. jobless claims fall to 216,000 — no sign layoffs are on the rise
Initial jobless claims, a rough way to measure layoffs, fell by 6,000 to 216,000 in the seven days ended June 15, the government said Thursday.
https://www.marketwatch.com/story/us-jobless-claims-fall-to-216000-no-sign-layoffs-are-on-the-rise-2019-06-20?
please visit shadowstats.com for a moar reasonable read on these numbers-the labor department has a very poor data set for these stats.
Philly Fed Mfg "Manufacturing conditions in the region weakened" in June
The survey’s indexes for new orders, shipments, and employment remained positive but also declined from their May readings.
Most of the survey’s future activity indexes improved but continue to reflect muted optimism for the remainder of the year.
https://www.calculatedriskblog.com/2019/06/philly-fed-mfg-manufacturing-conditions.html?
Gold, Global Stocks Soar, S&P At All Time High As Yields Tumble
S&P500 futures at all time high, indicating a record S&P print when the cash market opens.
Cash market….still funny to sa that.
10Y Treasury yield plunged overnight, dropping below 2% for the first time since November 2016 and reaching as low as 1.97% before rebounding.
Finally, the ultimate safe asset, gold, has surged 1.5% overnight, and has finally broken out above multi-year support as we noted last night.
Europe's Stoxx 600 Index boosted by gains in technology shares and carmakers. Just like in the US, European stocks and bonds rally simultaneously in the aftermath of the Fed’s dovish tilt yesterday.
This rally puts pressure on the world's central banks as they do not want this, the y wan thigher interest rates which means lower equity prices and moar control-expect the ECB(BIS) to have some news on douche bank soon.
Norges Bank, busy building a reputation as one of the world’s most hawkish central banks , unanimously delivered on the promised 25bps June hike, with the Key Rate now at 1.25%, as expected.”
The Bank of Japan kept monetary policy unchanged Thursday,Indonesia’s central bank signaled it’s ready to cut interest rates. The Philippines central bank kept its key rate unchanged.
The Bank of England kept rates unchanged but warned that the risk of a no-deal Brexit is rising, sending cable sliding.
In commodities, both Brent ($63.26) and WTI ($55.21) rally as Mideast tensions ratchet up, with gold jumping to the highest level in more than 5 years.
Iran trying to juice the price of oil upwards again and the COMEX traders are all too willing to participate-show some balls here and just don't.
In FX, the Dollar is down across the board as the FOMC matched market expectations by shifting further towards a rate cut, while Fed chair Powell delivered an extra dovish snippet in the press conference by revealing
that even those not plotting an ease are more prone towards loosening monetary policy if needed.
As a reminder the FX market is vastly larger then the equity/bond mkt-it trades, roughly $5 gorillion (trillion) everyday-this pepe never did much here as I like sleeping at night, and you really can't if you are levered up here.
US Event Calendar
9:45am: Bloomberg Consumer Comfort, prior 61.6
10am: Leading Index, est. 0.1%, prior 0.2%
Repeating the advice from a few days ago-the system may shut you out from accessing your money due to it's own need for liquidity, i.e. cash, please take some necessary steps to make sure you are prepared for that eventuality.
Have some cash, if you can, for daily items, prescriptions, food etc. They don't care if you can't access your money-you won't lose it but they can and will play games.
https://www.zerohedge.com/news/2019-06-20/powell-throws-towel-gold-global-stocks-soar-sp-all-time-high-yields-tumble
https://www.marketwatch.com/investing/bond/tmubmusd10y?
https://www.bloomberg.com/markets/stocks/futures
https://www.dailyfx.com/crude-oil