Good session for those wishing for a Santa Claus Rally, it may have just started. WTI oil also climbed higher and settled in the high 37's while the US dollar reversed course and melted back where it started this morning. Although the markets climbed higher, it was a gradual melting up on sometimes anemic volume and stopping just short of the next resistance.
WASHINGTON (Reuters) - United Launch Alliance, a joint venture of Lockheed Martin Corp and Boeing Co , on Wednesday said it ordered 20 additional RD-180 rocket engines from Russia, on top of 29 engines still being delivered.
WASHINGTON (Reuters) - The U.S. military's plans to spend up to $15 billion over the next five years on funding research should help encourage U.S. weapons makers to spend more on internal research instead of share buybacks, the Pentagon's chief arms buyer said.
WASHINGTON (Reuters) - Staples Inc accused federal regulators of applying antitrust laws in a "misguided" way to try to block its $6.3 billion merger with smaller office supply retailer Office Depot Inc .
MILAN (Reuters) - The top two investors in Ferrari have signed a shareholder pact giving them a total voting power of nearly 50 percent to keep firm grip on the sports car maker after it separates from Fiat Chrysler Automobiles .
WASHINGTON (Reuters) - New orders for U.S. manufactured capital goods fell in November and the prior month's increase was revised sharply lower as the drag on manufacturing from a strong dollar and spending cuts in the energy sector showed little sign of abating.
TORONTO (Reuters) - Oil rose more than 3 percent on Wednesday in thin, pre-holiday trading, buoyed by a surprise drop in U.S. crude inventories, but prices stayed near multi-year lows as global supplies remained abundant and OPEC lowered the demand outlook for its exports.
The power of the Central Bank 'Put' also shows the risk of its loss, warns BofAML's global equity derivatives group, implicitly creating a highly unstable and fragile market place.
Central banks have had a tremendous impact on financial markets in the last seven years, which is never more apparent than when looking at the world through the volatility lens. As shown in Chart 12, cross-asset volatility reached all-time lows in the summer of 2014, falling even below the 2007 pre-GFC bubble lows, crushed under the weight of unprecedented monetary policy (or in the ECB case, the promise of policy). This is remarkable considering the size of the risk "bubble" created pre-GFC.
The result is that risk is not fairly priced based on fundamentals but rather is better explained by investors not wanting to stand in front of central banks as they embark on QE. As Chart 13 shows, when decomposing the 41 factors of risk covering 5 asset classes from our GFSI index into regions, both Europe and Japan (the two regions still actively engaging in QE) are the two regions with the most depressed price of risk. This is despite being the two developed regions with some of the greatest fundamental risk.
Unprecedented CB - market co-dependence
Central banks have never been more sensitive to financial market conditions as they are today. This hyper-sensitive reaction function has placed huge downward pressure on volatility, and has accentuated local shock behavior as investors have become accust ...
Investors have taken the Third Avenue meltdown as an ominous signal in junk bonds. In his final hours at the firm, David Barse made a last-ditch effort to sell. It was rejected and he was escorted out of the building.
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