Daily Comment
Daily Comment (August 23, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] It was another quiet overnight session, typical of late summer. The flash PMI data came in fairly strong (details below), easing some concerns about the economy post-Brexit. However, until Britain actually leaves the EU, it is almost impossible to determine what the actual impact will be,… Read More »
Daily Comment (August 22, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] There are two items of note this morning. First, talk coming from the FOMC is that of two minds. On the one hand, several members are taking great pains to suggest that all meetings are “live.” Today’s weakness in equities and dollar strength is being attributed… Read More »
Daily Comment (August 19, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] We have been monitoring the situation in Russia since early August. There have been a number of reports indicating a troop buildup on the Ukrainian border. There have been unsubstantiated accounts of an attack in Crimea; Russia claims Ukrainian special operations forces attempted an attack, while… Read More »
Daily Comment (August 18, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] The FOMC minutes offered a short period of market volatility; the initial reaction was hawkish but that faded rather quickly. After reading the full report, it appears that the majority of members believe that: International events will continue to act as a drag on inflation and… Read More »
Daily Comment (August 17, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] It was another quiet night for news, typical of summer. The most interesting information came from NY FRB President Dudley and Atlanta FRB President Lockhart, who both suggested that the September Fed meeting (9/20-21) is “live” and the markets are underestimating the odds of a rate… Read More »
Daily Comment (August 16, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] Risk markets are mixed today in the midst of relatively thin global trading volumes. The dollar continued to slide lower amidst lower expectations for a Fed hike. The chart below shows the year-to-date move in the dollar, which has given back the gains it made due… Read More »
Daily Comment (August 15, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] Equities are moving higher alongside oil as the outlook for a Fed rate hike has become more dovish. The market-implied likelihood of a September hike fell to 18.0% this morning. However, despite very short-term expectations falling, the probability of a hike has risen for next year. … Read More »
Daily Comment (August 12, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] Eurozone economic growth came in on forecast, rising 1.6% annually. While growth remains subdued, Q2 marked the 13th consecutive quarter of expansion. German GDP came in better than expected, rising 3.1% annually compared to the 2.8% forecast. At the same time, Italy’s growth disappointed, coming in… Read More »
Daily Comment (August 11, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] European stocks advanced this morning alongside oil after the International Energy Agency (IEA) said it expects the global oil market to improve. In its monthly report, the agency said it expects increasing refining to draw down the ample crude stockpiles, despite some large OPEC producers pumping… Read More »