Rising Australia Consumer Price Index (CPI) To Buoy AUD/USD Outlook
A fourth consecutive increase in Australia’s Consumer Price Index (CPI) may spark a bullish reaction in AUD/USD as it puts pressure on the Reserve Bank of Australia (RBA) to lift the cash rate off of the record-low. Why Is This Event Important: The RBA may continue to change its tune as central bank officials forecast ‘a neutral […]
What If The Debt Ceiling Turns Ugly: How To Trade A Fall Spike In Volatility
As we first showed last week, while the equity market has remained completely oblivious to what the upcoming debt ceiling fight, which Morgan Stanley admitted over the weekend “worries us most” of all upcoming catalysts, the same can not be said of the T-Bill market, where 3M-6M yields have inverted the most on record on […]
Institutional Investor Capitulation
The latest State Street Investor Confidence Index data for July showed a distinct sense of upside capitulation (by North American institutional investors). The headline global index was up 7.9 points to 108.9 – this was driven purely by North American institutional investors with the North Am index up 10pts to 112.1 which offset declines in the European […]
3 Strong Buy Short-Term Investment-Grade Bond Mutual Funds
Investment grade bonds are generally considered safer than those rated below investment grade, which are commonly known as “junk” bonds. Bonds that are rated ‘AAA’ and ‘AA’ (high credit quality) and ‘A’ and ‘BBB’ (medium credit quality) by bond rating firms, like Standard & Poor’s, are usually regarded as investment-grade bonds. Also, bond funds are […]
Copper And The Upside
Copper prices are up very sharply today, igniting across markets a reborn “reflation.” Treasuries along with eurodollar futures have been stuck in anti-“reflation” for quite some time. Copper, on the other hand, is not just now breaking from the pack. Going back to May 9, this important economic indication has been so far steadily bucking […]
Wings, Sports And Declining Sales
When the American-classic Buffalo Wild Wings Inc. (BWLD) chain reports after the market closes tomorrow, they are poised to announce a third straight quarter of declining year-over-year EPS. The street is looking for profits of $1.01, while the Estimize consensus checks in at $1.03. Meanwhile the revenue numbers are similar. What is most worrisome about the popular […]
Ahead Of The Fed: Strongest Demand For 2Y Paper Since 2015
With the FOMC members currently huddling deep inside the bowels of the Marriner Eccles building, perhaps scheming how to spook markets by announcing a surprise rate hike tomorrow, one would have assumed demand for 2 Year paper in today’s auction would be less than stellar. One would be wrong, because moments ago the Treasury sold […]
Bitcoin Close To All-Time High
The recent surge in Bitcoin is associated with the technical details of the currency and an agreement which avoids a fork for the time being. In an article on Business Insiders, we read: Bitcoin has recovered somewhat from the drop in value seen last Sunday, with the price of the cryptocurrency reaching $2,701 at the time […]
As Bonds Slide, Here’s A Look At The Behind The Scenes Action
Ok, look: bonds are under some notable pressure on Tuesday. Clearly, some of that’s tied to the Fed and uncertainty about whether we will or won’t know anything more tomorrow than we know today about balance sheet normalization. But you also have to put this in the context of the German Ifo print which set the tone […]
Analysts Stay Bullish On Alphabet After Earnings With Growth Seen Continuing
Shares of Google’s parent Alphabet (GOOGL) are sliding after the company’s second quarter report, despite an earnings per share and revenue beat. Nonetheless, several Wall Street analysts remain bullish on the stock as they believe the quarter does not change Alphabet’s positive growth story. RESULTS: Last night, Alphabet reported second quarter earnings per share of […]
