Archive for June, 2016
Sunday, June 19th, 2016
Via WSJ:
Markets Stocks Abreast of the Market
Junk Bonds Regain Fans
Investors embrace U.S. high-yield market as stocks and government debt look expensive; net positive from ‘Brexit’?
ENLARGE
By Sam Goldfarb
June 19, 2016 3:40 p.m. ET
0 COMMENTS
Some investors are turning again to junk bonds, saying their higher yields make them a good bet at ...
Posted in Uncategorized | Comments Off on Junk Bonds as a Repositiory of Relative Value
Sunday, June 19th, 2016
Via Bloomberg:
June 19, 2016 — 2:16 PM EDT
Finally, a financial flare-up that the world’s central banks will have seen coming.
On Friday morning London time -- when the result of a U.K. referendum will show whether the nation has chosen to leave the European Union -- the Bank of Japan and ...
Posted in Uncategorized | Comments Off on Central Banks Prepared to Respond to Brexit Victory
Sunday, June 19th, 2016
Via Robert Sinche at Amherst Pierpont Securities:
CHINA: The Monthly Property Price report is expected to be released this evening; in April, 46 of 70 cities reported price increases versus the prior April. While corporate investment has been soft in China, the residential investment sector has exhibited notable improvement this year.
NEW ...
Posted in Uncategorized | Comments Off on Weekend Preview
Thursday, June 16th, 2016
Via Millan Mulraine at TDSecurities:
US: The Philly Fed Headline Index is Misleading
· The Philly Fed index surprised pleasantly to the upside, with the headline index rising to 4.7 in June from -1.8.
· On an ISM basis, however, the index weakened to 46.0 from 47.6.
· The details of the report were quite ...
Posted in Uncategorized | 1 Comment »
Thursday, June 16th, 2016
In her post FOMC news conference yesterday Ms Yellen sounded as though she was channeling the secular stagnation theories of the fellow whose job she took, Larry Summers.
Via Reuters:
Markets | Wed Jun 15, 2016 6:54pm EDT
Fed's Yellen acknowledges difficulty of escaping world's low rate grip
WASHINGTON | ...
Posted in Uncategorized | 1 Comment »
Thursday, June 16th, 2016
Via Kit Juckes at SocGen:
<http://www.sgmarkets.com/r/?id=h10bd347a,17574934,17574935&p1=136122&p2=f93d31def98c3e383b27f149b59c62a0>
The FOMC left rates on hold, lowering growth forecasts and the projections in the ‘dot-plot' for Fed Funds. The BOJ also left rates on hold and the yen has rallied sharply. US equities initially reacted positively to the Fed's dovish tone but suffered a late swoon ...
Posted in Uncategorized | Comments Off on Early FX
Thursday, June 16th, 2016
Via Marc Chandler at Brown Brothers Harriman:
The US dollar is higher against the major currencies but the Japanese yen and the New Zealand dollar. The dollar fell to new two-year lows against the yen to JPY103.55 before bouncing in the European morning back to JPY104.40. The Kiwi was helped by ...
Posted in Uncategorized | Comments Off on FX
Thursday, June 16th, 2016
This Bloomberg article quotes Brad Setser of the Council on Foreign Relations. He recently worked in the Obama Administration and has resumed blogging after a seven year hiatus. I highly recommend his blog, Follow the Money.
Via Bloomberg:
June 15, 2016 — 7:00 PM EDT
Updated on June 16, 2016 — 12:32 AM ...
Posted in Uncategorized | Comments Off on China Sells Stocks and Bonds
Thursday, June 16th, 2016
Maybe the BOJ was taking its cue from 17th century English poet John Milton's famous sonnet which concludes with the famous line, "They also serve who only stand and wait". Maybe the BOJ thought that its paralyzing inertia would not move markets. They were wrong as yen surged versus the ...
Posted in Uncategorized | Comments Off on BOJ Inaction
Thursday, June 16th, 2016
Via Bloomberg:
Elena Mazneva
Ryan Chilcote
ryanchilcote
June 16, 2016 — 5:48 AM EDT
U.S shale production may start to rebound next year on prices
Global period of low oil prices could last 10 to 15 years
It makes no sense now for Russia and Saudi Arabia, the world’s biggest oil suppliers, to work together to influence ...
Posted in Uncategorized | Comments Off on No Cooperation in the Oil Patch