What Can Stop This Party?
There’s a pretty strong argument to be made that once vol. spikes sustainably, the biggest risk to markets is what JPMorgan’s Marko Kolanovic is calling “quantitative exuberance.” That’s a little bit of an eye-roller. Apparently, everyone had the same idea for their year ahead previews. “Let’s do a riff on ‘irrational exuberance.’” Someone was first with “rational […]
China Deleveraging Hits Corporate Bonds As Cascade Effect Begins
Following the market lockdown during October’s Party Congress, many commentators were disturbed by the continued rise in Chinese government bond yields as we returned to “business as usual”, with the 10-year rising to 4%. At the beginning of this month, we discussed the sell-off (see “China: Shadow Bank Inflows Are Critical To Sustain The Ponzi…But They’re Falling”) and […]
ETH/USD Break Higher Confirmed – Can It Challenge The Peak?
We talked about how the price of Etherium was confined to a narrowing triangle and then how the break to higher ground was yet to be confirmed amid a double-top. Now, the break above uptrend resistance is confirmed, with the price of the crypto-coin leaving the old line behind. However, $410 is still a line of struggle. At […]
Sensex Trades In Green; IT Stocks Top Gainers
After opening the day marginally higher, share markets in India continued the momentum and are presently trading in green. Sectoral indices are trading on a mixed note, with stocks in the IT sector and stocks in the energy sector witnessing maximum buying interest. While stocks in the metals sector are leading the losses. The BSE Sensex is trading up by 95 points (up 0.3%) and […]
Bull Market Breather Or Beginning Of The End?
Stock markets have finally taken a breather over the last fortnight, although the S&P 500 has made a new, marginal, high this week. Cause for concern has been growing, however, in the bond markets where 2yr US bonds have seen a stately rise in yields. The chart below shows the constant maturity 2yr (blue) and […]
EUR/USD Awaits Wave-4 Retracement After Impulsive 3rd Wave Completes
EUR/USD 4 hour The EUR/USD seems to be continuing the uptrend within a wave 5 (purple) of a larger wave 1 (pink). The Fibonacci levels could act as potential resistance for the end of wave 1. 1 hour The EUR/USD is probably building a wave 5 pattern (blue) within wave 5 (purple). For the moment […]
AUD/USD Daily Analysis – Friday, November 24
AUD/USD’s upside movement from 0.7532 extended to as high as 0.7638. Further rise is still possible and next target would be at 0.7650. Above this level could take price to next resistance level at 0.7729. Near-term support is at 0.7570. A breakdown below this level will suggest that the short-term uptrend from 0.7532 is complete, […]
(Continental) Europe Outperforms In 2017
Written by Sara Potter, FactSet Six months ago, we highlighted data showing that the eurozone appeared ready to emerge from the economic doldrums. Since then, the outlook for Europe as a whole has improved even more and growth projections have risen accordingly, with just a handful of exceptions, including the United Kingdom. The October 2017 World Economic Outlook […]
Volatility Accident? SNB Flashback? What Else Before 2018?
From a volatility accident to SNB flashbacks, these are some of the unexpected pitfalls that may strike the financial markets before year-end. A December to Remember? Historically, December is a consistently quiet month for the financial markets due to the abundance of market holidays and the need among funds to balance the books. However, I […]
India’s $207 Billion Mess Is Once-In-A-Lifetime Opportunity For Asia’s Richest Banker
In October, we discussed Indian Prime Minister, Narendra Modi’s, decision to hand over $32bn to recapitalise India’s state banks. The motivation was India’s slowing growth rate and the need to add one million Indians to the workforce every month. Crippled by massive bad debts, the state-owned banks were struggling to extend more credit to the economy. The announcement […]
