Daily Comment
Daily Comment (January 18, 2017)
by Bill O’Grady, Kaisa Stucke, and Thomas Wash [Posted: 9:30 AM EST] President-elect Trump caused a stir yesterday when he suggested that he doesn’t want a strong dollar. Some of the commentary we saw suggested that this is nearly “unprecedented.” That’s not really the case. Since the dollar began floating under Nixon, presidents have, on occasion,… Read More »
Daily Comment (January 17, 2017)
by Bill O’Grady, Kaisa Stucke, and Thomas Wash [Posted: 9:30 AM EST] The big news item over the long weekend was U.K. PM May’s indication that she is leaning toward what is being called a “hard Brexit.” In general, a “soft Brexit” would mean the U.K. leaves the EU but the terms are such that not… Read More »
Daily Comment (January 13, 2017)
by Bill O’Grady, Kaisa Stucke, and Thomas Wash [Posted: 9:30 AM EST] Happy Friday the 13th! Outside of the Chinese trade data (see below), there wasn’t a lot of news. The number from China came in a bit soft as exports fell 6.1% from last year in USD terms. For China, the weaker trade data… Read More »
Daily Comment (January 12, 2017)
by Bill O’Grady, Kaisa Stucke, and Thomas Wash [Posted: 9:30 AM EST] The primary market theme this morning appears to be a broad reversal of the so-called “Trump trades” that have dominated the markets since the election. We are seeing weaker equities globally and the dollar is weaker, while Treasuries and gold are doing better. There… Read More »
Daily Comment (January 11, 2017)
by Bill O’Grady, Kaisa Stucke, and Thomas Wash [Posted: 9:30 AM EST] There was a lot of political and geopolitical news overnight. The most widely covered were reports that the Russians have compromising information about Donald Trump. The 32-page report, published last night by Buzzfeed, makes a series of allegations, suggesting that the president-elect engaged in… Read More »
Daily Comment (January 10, 2017)
by Bill O’Grady, Kaisa Stucke, and Thomas Wash [Posted: 9:30 AM EST] China reported its producer prices (see below). China’s PPI has been rising, suggesting growing inflation pressures in the country. Over the past year, producer prices have been rising rapidly in China after more than two years of producer price deflation. The combination of monetary… Read More »
Daily Comment (January 9, 2017)
by Bill O’Grady, Kaisa Stucke, and Thomas Wash [Posted: 9:30 AM EST] It was a rather quiet weekend. We are seeing a drop in oil prices this morning attributed to reports that production in Northern Iraq, which is under Kurdish control, may be rising. It was never certain whether the Kurds would cooperate and the worry… Read More »
Daily Comment (January 6, 2017)
by Bill O’Grady, Kaisa Stucke, and Thomas Wash [Posted: 9:30 AM EST] Happy employment data day! We have the details below but, in general, the data was mostly in line with expectations. We did see a bit of wage growth which has been bearish for bonds but supportive for the dollar. U.S. crude oil inventories fell… Read More »
Daily Comment (January 5, 2017)
by Bill O’Grady, Kaisa Stucke, and Thomas Wash [Posted: 9:30 AM EST] Initial comments from the Fed minutes yesterday suggested they were somewhat hawkish. Market action this morning, especially the dollar’s retreat, has led commentators to suggest that the minutes were, in fact, dovish. We suspect they were neither. The FOMC is in the same situation… Read More »