Global equities found a sharp risk-on rally as rounds of economic data from China and the United States positively spurred investor sentiment. After a marked improvement in China’s PMI data, the U.S. released both monthly retail sales and ISM manufacturing data. Before getting into the U.S. data, let’s briefly take a look at how China’s…
After a bond market panic that pervaded equity markets on Friday, the rather flat performance for U.S. equity markets on Monday was a welcome site to many on Wall Street. The Dow Jones Industrial Average (DJIA) finished slightly higher on Monday while the S&P 500 (SPX) and Nasdaq (NDX) finished slightly lower on the day. …
Happy weekend to all and we hope you enjoy and find value in our weekend update that includes our daily Technical Market Recap with Wayne Nelson. Before we get to that, however, it’s not often that you see a market aimed at crushing the options on Friday, but “manalamancha” was that fun to watch with…
Educational video on the yield curve and its many implications. Discusses the yield curve as an indicator of strength or weakness of the economy. How the Federal Reserve’s activity affects the yield curve vs. how investors affect the yield curve i.e. supply/demand....
There is at least one key component of the market rally that will likely come into play today, liquidity. Today marks yet another quantitative tightening (QT) day for the FOMC as it continues to reduce the size of its balance sheet. The calendar of QT days is depicted below. It’s a common and widely accepted…
Welcome to Finom Group’s weekly State of the Market (SOTM) video. Within this week’s SOTM we dive into some of the more recent economic data releases with great detail and analysis. Please click to review the video. To direct the chronology of the video and streamline conversational points of analysis and interest, we offer the following…...
In other headlines, J.P. Morgan Chase believes we’ve entered a new risk-on environment for equities. The bank’s global strategists continue to favor equities relative to bonds, saying in a monthly report that markets are still some way off from fully pricing in less tightening from the Fed. With valuations more supportive, they scrapped hedges that…
Here we are at the end of the trading week and futures are bright red, as Chinese economic data proves less than desirable. China on Friday reported industrial output and retail sales growth for the month of November that missed expectations, according to data from the National Bureau of Statistics. Industrial output in November grew 5.4%…
Hedging your long portfolio may be the best way to position oneself as global equities find more selling pressure following the steep declines on Wall Street from Tuesday. U.S. equity futures are pointing to another sharp decline as headlines broke overnight concerning the arrest of Huawie’s CFO. Canada has arrested Huawei’s global chief financial officer in…
So we had a pretty strong rally in the major indices on Monday. By now, everyone is aware that a “trade truce” between China and the U.S. has resulted in the latest market uptick. The media has taken to task the trade truce, describing it as lacking substance and less likely to prove an actual…
