Author Archive: Jeremy Parkinson
Turkey Lays An Egg
Global stock markets are rattled as the President of Turkey, Recep Tayyip Erdogan, runs his economy into the ground raising contagion fear surrounding other European nations. Initially, oil was following the stock markets down but turned positive on a report from the normally more bearish leaning International Energy Agency (IEA) warning that as oil sanctions […]
Consumer Price Index: July Headline At 2.95%
The Bureau of Labor Statistics released the July Consumer Price Index data this morning. The year-over-year non-seasonally adjusted Headline CPI came in at 2.95%, up from 2.87% the previous month. Year-over-year Core CPI (ex Food and Energy) came in at 2.25%, up from the previous month’s 2.26% and above the Fed’s 2% PCE target. Here […]
Lira Plummets As Erdogan Defies Markets, Urges Citizens To Exchange Dollars For Lira
Heading into today’s much-anticipated speech by Turkey’s president Erdogan, market expectations were high for at least a trace of conciliation; some analysts even expressed hopes that the central bank, i.e. Erdogan, would greenlight a rate hike as follows: Fidelity: 1000bps would be a “good start” SocGen: 600bps ADM’s Ostwald: 500bps + IMF’s bailout UBS: 350-400bps […]
E Forex Analysis Of EUR/USD For Friday, August 10
First, we look into the previous day trade and what happened on August 9, 2018, and the EUR/USD pair opened at 1.16089 and went high at 1.16196 and gone to low at 1.15249 and finally closed at 1.15266. The calculated pivot point for the day is 1.15570 The difference between high and low was 94 […]
Morning Call For Friday, August 10
Overnight Markets And News Sep E-mini S&Ps (ESU18 -0.41%) this morning are down -0.44% and European stocks sank -1.33% to a 3-week low on concern Turkey’s economic problems will spill over into the Eurozone. EUR/USD (^EURUSD -0.62%) fell to a 13-momnth low and the 10-year German bund yield declined to a 3-week low after the Financial Times […]
End Game: Lira Collapses Raising Specter Of Capital Controls, IMF Bailout
After weeks spent teetering on the brink, the Turkish lira collapsed on Friday, falling more than 13.5% at one point to beyond 6.30. Thursday’s losses were already accelerating amid what some traders described as stop-loss selling in TRYJPY (that’s a repeat of what happened several months ago during another particularly acute episode) and then, the […]
Are Low Equity Sector Correlations A Warning Sign For Stocks?
James Paulsen, chief investment strategist at Leuthold Group, sees trouble brewing in the growing disconnect between US equity sectors. He told CNBC earlier this week that correlations among US equities is unusually low and flashing a warning signal. That’s an especially dangerous sign when the stock market’s valuation is so high. Let’s dig deeper into […]
Sensex Ends 155 Points Lower; Metal And Healthcare Stocks Witness Selling
Indian share markets continued to trade in the red during the closing hours of the trading session and ended the day on a negative note. Losses were largely seen in the metal sector and healthcare sector. At the closing bell, the BSE Sensex stood lower by 155 points (down 0.4%) and the NSE Nifty closed lower by 41 points (down 0.4%). Both – […]
Understanding TIPS: The Compelling Case For Rising Interest Rates And How To Benefit From Them
As we head further into 2018, the case for rising interest rates is compelling, and it Really is All About Supply and Demand! On the demand side, those buyers of treasuries that are traditionally the largest are reducing their participation in the market, thereby reducing demand and leading to lower prices and higher yields. Specifically: […]
Strong Canada Employment Report To Curb USD/CAD Rebound
Updates to Canada’s Employment report may curb the recent rebound in USD/CAD as the economy is expected to add another 19.0K jobs in July. After delivering a 25bp rate-hike in June, data prints pointing to a strengthening labor market may encourage the Bank of Canada (BoC) to further normalize monetary policy over the coming months as the […]
