Daily Comment
Daily Comment (July 13, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] It was another quiet overnight session. Equities continue to be well bid; as noted above, so far, earnings are coming in better than expected. Of course, as our AAW discusses this week, the data we track daily comes from Thomson-Reuters, meaning that they are probably overstating… Read More »
Daily Comment (July 12, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] The most important news for investors is that, despite everything, equity markets around the world are gaining strength. This improvement is coming despite slowing earnings growth, sluggish economic activity, Brexit, an adverse ruling against China on its maritime claims, U.S. elections, etc. Why the strength? Most… Read More »
Daily Comment (July 11, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] There is a lot of political news this morning, all of it from abroad. Leadsom quits: The race to replace PM Cameron ended this morning when Energy Minister Andrea Leadsom quit the race, leaving Home Secretary Theresa May as the only remaining candidate. Almost immediately, the… Read More »
Daily Comment (July 8, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] We discuss the labor market data in more detail below but the initial response is that the Bureau of Labor Statistics (BLS) seems to have lost its way. We saw a massive jump in June non-farm payrolls by 287k with a net revision of -6k, reversing… Read More »
Daily Comment (July 7, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] Financial markets are attempting to stabilize in front of tomorrow’s employment data. We did get the ADP data (see below), which came in above forecast and rather strong compared to last month. Current expectations call for a 180k rise in payrolls and a 4.8% unemployment rate… Read More »
Daily Comment (July 6, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] It’s more of the same this morning. The GBP has declined under $1.30, worries are present about Italian banks becoming a systemic risk and we continue to see the relentless decline in sovereign yields. China is continuing its “stealth” depreciation. Here are a few charts of… Read More »
Daily Comment (July 5, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] After an impressive recovery in equities last week, markets are weakening to start this week. There are a number of factors weighing on sentiment. Here are the key ones: The Italian banking mess: Today’s lead headline in the FT discusses how Monte dei Paschi (BMPS: IM,… Read More »
Daily Comment (July 1, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] It’s global PMI day! We have recorded the overseas numbers below. Overall, Europe came in strong, while Asia was mostly neutral to negative. Although the European numbers were positive, they may be dampened post-Brexit. After BOE Governor Carney promised further monetary accommodation yesterday, financial markets rose… Read More »
Daily Comment (June 30, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] The big shock overnight came from a surpise announcement by former London Mayor Boris Johnson, who withdrew from the race for the PM job in the U.K. after a withering attack from an (now probably former) ally, Michael Gove. This withdrawal adds to uncertainty surrounding the… Read More »