Author Archive: Jeremy Parkinson
E The Daily Shot And Data – March 11, 2016
We start with the Eurozone where Mario Draghi indeed brought out the ECB “bazooka”. Source: nextquotidiano.it Here is what the central bank decided to do: rate cuts, expanded QE, buying corporate bonds, new TLTRO, etc. Source: @fastFT While this cut in the deposit facility was expected, the benchmark rate cut was new. The markets cheered, […]
Joe Sixpack’s Situation In 4Q2015: Joe Continues To Be Better Off
The Federal Reserve data release (Z.1 Flow of Funds) for 4Q2015 – which provides insight into the finances of the average household – shows a modest improvement in average household net worth. Our modeled “Joe Sixpack” – who owns a house and has a job, and essentially no other asset – is better off than […]
Morning Call For March 11, 2016
OVERNIGHT MARKETS AND NEWS March E-mini S&Ps (ESH16 +0.93%) are up +0.98% at a 2-month high and European stocks are up +2.97%. Bank stocks are higher with Goldman Sachs and Morgan Stanley both up at least 1.5% in pre-market trading, while a +2.30% jump in the price of crude to a 3-month high gives energy producing […]
The Chinese Bank Bailout Begins
For some time I have been going on about the huge amount of non performing bank loans (NPL’s) in the Chinese banking system link1. The Chinese response to the 2008-2009 global financial meltdown was to go on an unprecedented public spending binge. The aim was simple to keep up employment and economic growth so as to […]
Oil Rebounds After IEA Says Price “Bottomed” As Goldman Warns Of “Sharply Lower” Prices As Storage Fills
In its latest monthly market report released early on Friday, the International Energy Agency forecast that oil prices may have bottomed as shrinking supplies outside OPEC and disruptions inside the group erode the global surplus. This comes just one month after it had a far gloomier assessment of oil prices, warned on excess supply, and asked if […]
EUR/USD And GBP/USD Forecast For March 11, 2016
EUR/USD The EUR/USD pair initially fell during the course of the day on Thursday, testing the 1.08 level below. That was an area that offered quite a bit of support, and quite frankly it has been in the past. The European Central Bank had an interest-rate announcement as well as the monetary policy statement coming […]
E New Measures Taken By ECB
On Wednesday, the Canadian bulls grew stronger sending the USD/CAD pair into fresh lows around the 1.3230 handle. The sentiment was fueled by Bank of Canada’s decision to leave the overnight rate target unchanged at 0.5% – in line with expectations: the Bank rate is set at 0.75%, while the deposit rate at 0.25%. BoC […]
Bet On Bull Market With These Strong Momentum Stocks
Global headwinds such as growth issues in China, crashing commodity prices and volatile oil prices had kept international markets at its toes for a while. With China and oil playing foul, global growth prospects remained clouded, dampening investors’ confidence. This was evident from the massive sell-off in the early part of this year. Moreover, the […]
ECB Surprise From Draghi
Yesterday’s Trading: On Thursday Draghi made the headlines. No central bank governor shifts the price like he can. The ECB decision and Draghi’s speech shot volatility on the euro/dollar up 3%. The same happened on 3rdDecember, 2015 when the EUR/USD rose 450 points to 1.0980 after an ECB meeting. Market volatility in December rose for […]
Dollar Recovers Against The Euro And Yen
The euro is paring the recovery that began in the middle of the ECB’s press conference yesterday. The markets had reacted as one intuitively would expected to broad easing of interest rates and credit conditions. The market reversed, and violently so, only after Draghi seemed to rule out further interest rate cuts. Many investors took this […]
