US stock future indexes are sharply higher this morning (SPY +0.5%) after staging a dramatic comeback yesterday, led by banks and healthcare stocks as investors bet on the prospect of less regulation under a Trump administration. Indicators are bullish.
Here is the current market situation from CNN Money
European markets are mixed today. The CAC 40 is up 0.70% while the DAX gains 0.27%. The FTSE 100 is off 0.30%.
(Reuters) - U.S. stock index futures were higher on Thursday with Dow futures hitting a record high, a day after Republican Donald Trump won the White House race and signaled a shift from austerity policies.
WASHINGTON (Reuters) - A senior economic adviser to President-elect Donald Trump stressed economic growth over discussion of Federal Reserve policies on Thursday, citing the need for small business job growth through better regulation, energy policy and tax cuts.
(Reuters) - Department store operator Macy's Inc reported a 4.2 percent fall in third-quarter sales, and said it had formed a partnership with asset manager Brookfield Asset Management to enhance the value of its real estate.
(Reuters) - ConocoPhillips , the largest U.S. independent oil producer, said on Thursday it would reduce its capital budget by 4 percent to $5 billion next year due to technology gains, cost cuts and other improvements.
HONG KONG (Reuters) - A top adviser of U.S. President-elect Donald Trump lashed out at the Obama administration for failing to embrace the China-led Asian Infrastructure Investment Bank (AIIB), suggesting a possible policy shift when Trump takes office in January.
BRUSSELS (Reuters) - Rubik's Cube, a multicolored three-dimensional puzzle, lost a trademark battle on Thursday after Europe's top court said its shape was not sufficient to grant it protection against copycats.
LONDON (Reuters) - The oil market surplus may run into a third year in 2017 without an output cut from OPEC, while escalating production from exporters around the globe could lead to relentless supply growth, the International Energy Agency said on Thursday.
There was an inordinate number of new highs AND new lows on the exchanges today, a condition that has spelled trouble for stocks in the past.
Even aside from yesterday's historic election results, the action in financial markets was downright epic. It certainly makes selecting one Chart Of The Day a difficult prospect. There were so many gyrations, buying frenzies and selling panics that we hardly know where to begin. Because so many have covered the stunning equity rally off of the election night lows, we're going to go in a different direction. To the extent that any of today's monumental trading actually contained meaningful signals, we're going to present a few charts demonstrating why the rally may not have been quite as robust as it appeared. Now, we're not trying to minimize a 1000+ point reversal in the Dow. But there were a few items that didn't quite jive with a rally that large.
First off, while the stock indexes put in hefty gains by the end of the day, breadth was not nearly as strong by comparison. Specifically, though the S&P 500 gained more than 1% on the day, NYSE Advancing issues outpaced Decliners by a relatively thin margin of 1698-1386. And while bond-related issues may have had a large impact on the data, at barely 55% of issues traded, this marked the weakest showing by NYSE Advancing Issues on a day the S&P 500 gained over 1% since October 2008.
Since 1970, there have now been 70 occurrences whereby the S&P 500 gained at least 1% while NYSE Adva ...
Back in June, we warned that based on simple duration analysis, as a result of total market-traded US debt aggregates anywhere between $17 and $40 trillion - an all time high in terms of rate duration...
... traders faced massive mark-to-market losses of anywhere between $2.4 and $5 trillion should rates suddenly spike higher.... as they did yesterday, when as we reported the yield on the 10Y and 30Y Treasury jumped the most in percentage terms on record."The U.S. 10-year yield was three basis points, or 0.03 percentage point, higher at 2.09 percent as of 12:09 p.m. in London, according to Bloomberg Bond Trader data. The yield jumped 20 basis points Wednesday, the most on a single day since July 2013."
Today, Bloomberg has crunched the numbers after yesterday's bond rout, and calculates that bond investors saw $337 billion - just over a third of a trillion - in losses on global bond holdings in a single day Wednesday "as Donald Trump's election as U.S. president sparked concern his plan to boost economic growth will lead to a surge in inflation."
The sharp, aggressive selloff, which continues today, spread into European and Asian bonds on Thursday, as traders caught up with moves in U.S. Treasuries. Speculation that Trump's victory and a Republican-led Congress will lead to a wave of spending, spurred the likelihood that inflation will pick up in coming months, which would in turn erode the value of bonds. The decline in bonds saw Bank of America Merrill Lynch's Global Broad Market Index drop by about 0.7 percent on Wednesday.
Dedollarization and Uncertainty drive Central Bank Demand for Gold
Central banks added 81.7t to their gold reserves in the third quarter
Total central banks purchases in the year-to-date reach 271.1t.
Fellow-SCO member Kazakhstan and Belarus also had to holdings
90% of reserve managers intend to increase or maintain gold reserves.
"The case for gold remains compelling for reserve managers" state WGC
Unconventional monetary policies will underpin gold demand in coming years.
Central banks added 81.7t to their gold reserves in the third quarter, bringing total purchases in the year-to-date to 271.1t. This was a fall from 168t purchased in the previous quarter. Much of this has gone unnoticed by the mainstream media, something which seems shortsighted given the monetary and geopolitical implications both this and recent elections results may lead to.
The World Gold Council described recent buying as a 'more measured' approach to previous years. Between Q3 2014 and Q3 2015 407.7t were purchased by central banks. The data was slightly ...
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