Daily Comment
Daily Comment (January 16, 2018)
by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EST] Welcome back from the long weekend! In a sense, not much has changed—equity markets continue to move higher. Here are the news items of note: Germany’s political turmoil continues: The EUR has dipped this morning, a pause in a torrid appreciation, as two items are raising… Read More »
Daily Comment (January 12, 2018)
by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EST] Coalition deal in Germany: This morning, Chancellor Merkel announced that an agreement has been reached to form a conservative coalition with the Social Democrats (SPD). This agreement will likely pave the way for Merkel to finally form a new government after months of negotiations following… Read More »
Daily Comment (January 11, 2018)
by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EST] Chinese pullback in Treasuries: Yesterday, citing an anonymous source, Bloomberg News reported that China is considering reducing or halting its purchases of U.S. Treasuries; China has since denounced the report as “fake news.” Initially, U.S. Treasuries, the dollar and U.S. equities fell on the news,… Read More »
Daily Comment (January 10, 2018)
by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EST] The problem with bonds: Bond yields jumped yesterday with the 10-year T-note yield breaching 2.55%, breaking 2.50% for the first time since March. There appear to be two catalysts behind the jump. First, the BOJ reduced its purchases of bonds; it should be remembered that… Read More »
Daily Comment (January 9, 2018)
by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EST] Crypto problems: The major cryptocurrencies fell sharply yesterday after wide price divergences on South Korean exchanges led the exchanges to limit data on pricing. South Korea, worried about excessive speculation in the cryptocurrencies, has been cracking down recently which is leading to growing concern about… Read More »
Daily Comment (January 8, 2018)
by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EST] Happy Monday! We may be on a path to the first down day of the year for equities, although it is obviously early. Here is what we are noting this morning: Abandoning the Palestinians: We have always believed that the Palestinian cause was more for show… Read More »
Daily Comment (January 5, 2018)
by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EST] Happy employment day! We show all the details below but the quick analysis is that the report was a bit soft; payrolls came in below forecast and wage growth remains tepid. The report was dollar bearish, Treasury bullish and neutral for equities. Here is what we… Read More »
Daily Comment (January 4, 2018)
by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EST] It’s a rather quiet morning. Here is what we are following: Economic momentum is rising: The ISM manufacturing index continued to hold near the 60 mark, which is an unusually high level. The ISM manufacturing index exceeds 59.0 only 17% of the time. Equally impressive is… Read More »
Daily Comment (January 3, 2018)
by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EST] U.S. equities appear poised to grind higher. Here is what we are watching this morning: Iranian update: Iran has seen six consecutive days of protests with 22 dead and over 450 people incarcerated. These protests are fundamentally different from the 2009 event we mentioned yesterday. First,… Read More »