U.S. futures pointed to a modestly lower open today (SPY -0.3%) after the Dow racked up its seventh consecutive advance yesterday and gains left the Spooz within a half percent of a record closing high. The US dollar remained at an 11-month high melting towards a record level not seen in 14 years and U.S. bond yields continued to move upward.
Here is the current market situation from CNN Money
Looking at the last three columns, the first one (Actual), is what was reported this morning. The second column (Forecast) is what analysts had forecast and the third column is the previous report. Full calendar HERE.
LONDON/DOHA (Reuters) - OPEC officials are working to nail down details of their plan to limit oil supply and gaps over some sticking points are narrowing, OPEC sources said, a sign of progress in finalizing the exporter group's first such deal since 2008.
NEW YORK (Reuters) - President-elect Donald Trump will last no more than four years in the White House, a period when corporations and Wall Street will retain the upper hand over the struggling workers who helped elect him in a populist wave, bond manager Bill Gross of Janus Capital Group Inc said on Wednesday.
(Reuters) - Minneapolis Federal Reserve President Neel Kashkari unveiled a plan on Wednesday to prevent future government bailouts by forcing the largest U.S. banks to hold so much capital that they would probably decide to break themselves up.
CHICAGO (Reuters) - Target Corp on Wednesday reported a higher-than-expected quarterly profit and raised its fiscal-year forecast after benefiting from a strong back-to-school shopping season and higher online sales.
BRUSSELS (Reuters) - Microsoft has offered concessions to EU antitrust regulators over its $26 billion bid for social network LinkedIn, the European Commission said on Wednesday, as the U.S. software company seeks to allay concerns over its largest ever deal.
LONDON (Reuters) - The Federal Reserve will hike U.S. interest rates in December barring any major shocks, policymaker James Bullard said on Wednesday, adding that a single rate increase may be enough to move monetary policy to a "neutral setting".
As a result of the ongoing bond rout, an interesting dynamic has emerged post the recent sell-off. With 10 year Japanese yields edging back above zero intra-day yesterday and again this morning (currently 0.027%) for the first time since September 21st the market is now watching the BOJ's every move, and specifically whether the Japanese central bank will defend the zero level, as it declared it would at its especially if the global yield sell-off gathers pace over the coming weeks and months.
Asa reminder, on September 21, the BOJ surprised the world when it announced its latest monetary policy iteration dubbed "QQE with Yield Curve Control", according to which the BOJ would buy JGBs such that 10-year yield remain at the current level of around zero percent. Ironically, at the time - when yields were far lower - the BOJ was implicitly threatening it would taper purchases to prevent yields from going too low. It is now, however, facing the opposite problem as suddenly global yields are soaring following the Trump presidency.
Why the keen focus on what Kuroda will do next? Because as DB's Jim Reid explains, "it would be a strange decision to abandon the new policy so soon after announcing it so assuming global yields remain elevated they may be forced to buy more JGBs than they thought when the new scheme was announced."
But where the BOJ's reaction gets more interesting is what it means internationally: if the BoJ sticks to defending zero in a world where the US is likely to increase fiscal spending then you could make an argument that there is full blown helicopter mone ...
Gold mine production is peaking globally and this is "bullish for gold" according to a slowly emerging group in the gold industry. It is great to see the reality of peak gold production slowly be acknowledged in the mainstream as it is an important fundamental factor in the market which has been continuously ignored.
As reported by Bloomberg in 'Decade of Gold Mine Declines Poised to Spur Deals, Prices' today:
Gold's dwindling pipeline of new mines is poised to usher in a decade-long output slump, spurring prices and delivering a new impetus for dealmaking and industry consolidation, according to Goldcorp Inc., the third-largest gold producer.
Mine supply may fall about a third in the 10 years to 2025, according to Bloomberg calculations based on forecasts from BMO Capital Markets and Randgold Resources Ltd. The number of newly discovered primary gold deposits fell to three in 2014, from a peak of 37 in 1987, according to Melbourne-based industry adviser MinEx Consulting ...
Econintersect wants your comments,
data and opinion on the articles posted. As the internet is a
"war zone" of trolls, hackers and spammers - Econintersect must balance its
defences against ease of commenting. We have joined with Livefyre
to manage our comment streams.
To comment, using Livefyre just click the "Sign In" button at the top-left corner of
the comment box below. You can create a commenting account using your
favorite social network such as Twitter, Facebook, Google+, LinkedIn or
Open ID - or open a Livefyre account using your email address.
You can also comment using Facebook directly using he comment block below.
Econintersect Live Market
Print this page or create a PDF file of this page
The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.
Take a look at what is going on inside of Econintersect.com