Futures markets have shifted expectations for the Fed's liftoff further out in time. The July-15 Fed Funds futures contract is only pricing a 12bp Fed Funds rate increase from the current levels — not enough for a full hike.
A favorable start to the bank sector results should help stocks overcome global growth fears, at least for today. Banks’ domestic orientation limits the significance of their results to the ongoing growth worries, but their positive results are nevertheless welcome.
Oil is priced in dollars. So what? Currencies are fungible. Even if one did need dollars to buy oil (they don't), the pound, Swiss francs, euros, and every other major currency on the planet can instantaneously be exchanged for any other currency at will.
What is the general feeling and outlook among top market technicians right now? Robin Griffiths spoke with Financial Sense Newshour this past week as the International Federation of Technical Analysts met in London and said, “no one is expecting a crashing wipeout right now"
In this business it has been said, “Sometimes knowing the right question is more important than actually knowing the answer.” Over the years I have found that old Wall Street axiom to serve me well.
Expectations of Bank of Japan accelerating securities purchases at the October meeting have fallen considerably. Majority of economists now expect any type of change in policy to take place no earlier than December/January, if ever.
The U.S. dollar is trading heavier against most of the major and emerging market currencies. The euro and sterling remain within the ranges seen before the weekend while the dollar slipped to JPY107 in a Tokyo-less Asian session.
I think it’s important to acknowledge that the economy is not stateless. A change in one variable—e.g. money supply—may have a different effect depending on the states of individual actors in the economy.
Dominic Frisby says Satoshi Nakamoto was a goldbug and explains how bitcoin was designed to replicate gold mining. Sheraz Mian of Zacks Investment Research says third quarter earnings season will be very important this year and explains why.
The damage done to the markets is far greater than what appears on the surface as major indices have only experienced mild pullbacks. However, looking at the average decline among thousands of stocks listed on U.S. exchanges and within large indices reveals a stealth bear market occurring.