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Daily Market Comment – Dollar recovers, stocks stand their ground despite rising yields

Posted on March 15, 2021 at 9:48 am GMT

Dollar gets its mojo back as US yields march higher, loonie climbs too US stock markets close at record highs, resilient to rising yields Quiet start to a busy week, featuring Fed, BoE, and BoJ meetings Can’t hold stock markets down The narrative that rising bond yields are toxic for stocks came under heavy fire lately. American stock markets hit new record heights last week even as longer-dated Treasury yields moved to new cycle highs, demonstrating that a higher cost [..]

Daily Market Comment – Wall Street hits new records but euphoria fades as yields rise

Posted on March 12, 2021 at 9:42 am GMT

Threat of rising yields keeps animal spirits in check, revives dollar ECB promises to speed-up QE, but euro/dollar driven by other factors Yen suffers as rate differentials widen, Canadian jobs data coming up Stocks hit new records but cool down as yields climb The battle between growing economic optimism and concerns of monetary policy normalization continues to rage in financial markets. Investors are warming up to stocks amid hopes that all the federal spending will lead to an unprecedented boom [..]

Daily Market Comment – All eyes on ECB meeting as calmer tones prevail

Posted on March 11, 2021 at 9:15 am GMT

ECB unlikely to fight the spike in yields today, may boost euro a little Tame US inflation and solid bond auction calm yields, hurt dollar Dow Jones hits new record but tech lags as infrastructure comes into view Too early for ECB to fight rising yields? The main event today will be the European Central Bank policy decision at 12:45 GMT. The ECB views the latest spike in bond yields mostly as an American story that’s spilling over into Europe [..]

Daily Market Comment – Receding yields drive markets into euphoria, BoC meets

Posted on March 10, 2021 at 9:24 am GMT

Bond yields cool down, setting off massive rebound in tech stocks Dollar retreats a touch ahead of US inflation data and key bond auction Bank of Canada meets as well – dovish signals could bruise the loonie Everyone is trading bonds these days Global markets continue to be driven almost entirely by moves in bond yields. The week started with Wall Street panicking about rising yields, but the hysteria soon faded and euphoria made a stunning comeback yesterday as yields [..]

Daily Market Comment – Bond market meltdown devastates stocks, resurrects dollar

Posted on February 26, 2021 at 9:26 am GMT

Carnage in bonds sends US yields flying, equities in a world of pain Dollar comes back from the dead, commodity FX and pound lose altitude Just a disastrous bond auction or a harbinger of bigger moves? Near-disaster in bonds infects everything else What started out as a relatively calm session evolved into a near-apocalypse in the bond market on Thursday, sending shockwaves across every other asset class. Investors are dumping government bonds at a stunning pace, pushing the yields on [..]

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Technical Analysis – US 100 index suffers brutal correction, but uptrend intact

Posted on February 23, 2021 at 4:00 pm GMT

The US 100 index (Cash) has taken heavy fire over the past week, retreating very sharply after touching a record high of 13,904 in mid-February. The speed of the drop has accelerated in the last couple of sessions, but on the bright side, the price structure of higher highs and higher lows has not been violated, keeping the broader uptrend in play. The short-term oscillators reflect the latest correction. The RSI has crossed below the neutral 50 barrier and looks [..]

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US Open Note – Dollar up, stocks sharply lower ahead of Powell’s testimony

Posted on February 23, 2021 at 2:10 pm GMT

Waiting for Powell to respond to inflation expectations Rising inflation expectations and the rally in bond yields will be examined during Powell’s semi-annual testimony before the Senate at 15:00 GMT as markets will be eagerly waiting for the Fed chief to update his views regarding price growth, economic expansion and the outlook for monetary policy. Although Powell may prefer to play it safe, reiterating that downside economic risks continue to linger in the background and that it is too early [..]

Daily Market Comment – Dollar and tech shares suffer ahead of Powell’s testimony

Posted on February 23, 2021 at 9:47 am GMT

· Tech stocks slump as higher yields bite, but FX and commodities calm · Dollar lags despite equity selloff, highlighting recent shift in dynamics · All eyes on Chairman Powell’s testimony today, and RBNZ decision afterward Nasdaq gets smoked as value outshines tech It was a particularly strange session on Monday, with many of the familiar relationships between asset classes breaking down thanks to the pandemonium in bonds. US stock markets retreated for a fifth consecutive day, with the Nasdaq [..]

What’s behind the mania in stocks? – Special Report

Posted on February 16, 2021 at 11:46 am GMT

There’s something different about this booming stock market, especially when one looks at all the madness under the hood in small-cap and penny stocks. Several reasons have been floated to explain this phenomenon, from cheap money policies to massive government spending to the rise of small investors. It looks like a bubble, but the thing about bubbles is that they can last longer than anyone thinks possible. The only game in town The equity market has staged an epic comeback [..]

Daily Market Comment – Markets sink despite Fed tranquilizer

Posted on January 28, 2021 at 9:25 am GMT

Stocks suffer, dollar shines amid whispers of hedge fund slaughter Fed plays down tapering speculation, but unable to calm nerves Euro on the ropes as ECB rate cut speculation returns US GDP data coming up today amid peculiar earnings season Short squeeze epidemic forces hedge fund liquidations The sound you are listening to is the stock market cracking from within, as a few funds liquidate their books to cover losses on their short bets, which retail traders have pushed to [..]

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