U.S. stock index futures pointed to higher numbers at the open (SPY +0.3%), with the SP 500 poised to reach an all-time high, joining a global equity rally. This week marks the start of second-quarter earnings season with Alcoa reporting after the close Oil prices declined on this morning to a l2-month low (44.55) amid increasing U.S. drilling activity.
Here is the current market situation from CNN Money
European markets are broadly higher today with shares in Germany leading the region. The DAX is up 1.54% while France's CAC 40 is up 1.36% and London's FTSE 100 is up 0.86%.
LONDON (Reuters) - Shares rose in Europe and Asia on Monday and the safe-haven yen tumbled against the dollar after upbeat U.S. jobs data, though the prospect of more stimulus to counter a weak global growth outlook kept low-risk sovereign bond yields near record lows.
FARNBOROUGH, England (Reuters) - The U.S. Defense Department on Monday extended by two years a project that has cut the cost of Lockheed Martin Corp's F-35 fighter plane by more than $1 million per jet, and kicked off a similar project to cut operating and maintenance costs.
LONDON (Reuters) - Oil fell on Monday over signs that U.S. shale drillers have adapted to lower prices and on renewed indications of economic weakness in Asia where refiners are already trimming crude runs.
(Reuters) - Tesla Motors Inc CEO Elon Musk on Sunday tweeted his intention to soon publish part two of his "top secret Tesla masterplan" following an embattled several weeks for the Silicon Valley heavyweight.
SEOUL (Reuters) - South Korea's environment ministry said on Monday it will decide later this month whether to revoke the certification of 32 vehicle models made by Volkswagen after prosecutors accused the German carmaker of fabricating documents on emissions and noise-level tests.
FARNBOROUGH, England (Reuters) - Top planemakers shrugged off worries about a faltering global economy on the opening day of the Farnborough Airshow on Monday, with Airbus announcing a $4.4 billion order and Boeing raising its 20-year forecast for jet demand.
TOKYO (Reuters) - Shares in Japan's Nintendo Co Ltd soared again on Monday, bringing market-value gains to $7.5 billion in just two days as investors cheered the runaway success of Pokemon GO - its first long-awaited venture in mobile gaming.
LONDON (Reuters) - British finance minister George Osborne will meet some of Wall Street's biggest investors in New York on Monday to urge them to stick with Britain despite last month's vote to leave the European Union, his office said.
In the last market comment we shared from Dennis Gartman, we observed that the "world-renowned commodity guru" said that "you'd have to hold a gun to my head to be an aggressive buyer. I'm quietly, modestly net short and I feel reasonably comfortable being that way."
"I find it very difficult to be anything other than modestly bearish. I trade only from my own account and I am modestly short of equities generally and I think that's the proper place to be. It's a little scary to be bullish at these prices when it's the Fed and monetary authorities who are sponsoring share prices (going) higher - it can't last for very long."
To this, our response was simple: "Expect another ramp higher with new all time highs to follow."
Sure enough, after tagging all time highs on Friday, the S&P is about to open at never before seen levels.
So does this mean that Gartman has thrown in the towel and is once again bullish? You bet. Here is his latest rant:
SHARE PRICES HAVE SOARED since Friday' morning with all ten of the markets comprising our International Index having risen and with 7 of the 10 rising by more than 1%, as represented by the "green" coloring in the price index below, and as 2 of those 7 have risen by more than 2% and with 1 of those ten... the market in Japan... having risen by more than 4%. It is a spectacle of bullish enthusiasm and the markets are "dancing" to TINA's tune... There Is No Alternative. Money has no place to go these days other than to the equity markets and the global markets are breaking out to the upside. It is really quite stunning.
Behind the veneer of "all is well" being promoted by both world Governments and the Mainstream Media, the political elite have begun implementing legislation that will permit them to stop you from getting your money out of the system during the next crisis.
This strategy has already been employed in the UK where over 50% of all funds devoted to commercial property are currently LOCKED... meaning you cannot get your money out.
Three more fund managers have stopped investors from leaving their UK property funds, trapping an additional £5.5bn and bringing to six the funds unable to meet withdrawal requests after the Brexit vote.
More than half of the £25bn of funds committed to commercial property by retail investors is now locked down by managers, who are under pressure to sell buildings to raise cash.
Henderson Global Investors said on Wednesday that it had suspended redemptions from its £3.9bn UK property fund.
Source: Business Day Live
In the US, the SEC has implemented similar regulations designed to stop investors from pulling their funds when a Crisis hits.
The regulation is called Rules Provide Structural and Operational Reform to Address Run Risks in Money Market Funds. It sounds relatively innocuous until you get to the below quote:
Redemption Gates - Under the rules, if a money market fund's level of weekly liquid assets falls below 30 percent, a money market fund's board could in its discretion temporarily suspend redemptions (gate). To impose a gate, the board of directors would find that imposing a gate is in the money market fund's best interests. A money ma ...
Following the surprising withdrawal announcement by Tory leadership challenger Andrea Leadsom, moments ago Theresa May was confirmed as the new leader of the UK Tory Party.
THERESA MAY CAN BE NAMED TORY LEADER, U.K. PM, BRADY SAYS
Theresa May has been confirmed as the new leader of the Conservative Party pic.twitter.com/ntNH29vuso
— Sky News (@SkyNews) July 11, 2016
So does this mean that the next UK prime minister has been decided? More or less yes: as Sky adds, the 1922 Committee can now either name May as Prime Minister or hold a ballot of Tory members on her leadership.
Leadsom pulls out of the Tory leadership race.
1922 Committee can either name May as PM or hold a ballot of Tory members on her leadership
— Sky Data (@SkyData) July 11, 2016
In any case, bypassing this formality, it is now virtually assured that May will be the next UK Prime Minister, one who will be tasked with either triggering the Article 50 process for the UK's departure from the EU, or trying to undo the entire process.
-- this post authored by Gara Afonso and Sam Stern
Over the last decade, the federal funds market has evolved to accommodate new policy tools such as interest on reserves and the overnight reverse repo facility. Trading motives have also responded to the expansion in aggregate reserves as the result of large-scale asset purchases. These changes have affected market participants differently since, for instance, not all institutions are required to keep reserves at the Fed and some are not eligible to earn interest on reserves.
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