Weak U.S. Retail Sales Weigh on Dollar and Treasury Yields
Investors have interpreted a surprisingly weak U.S. retail sales report as a sign of a softening economy, reducing expectations for further interest-rate increases from the Fed. The U.S. Dollar and U.S. Treasury yields have declined in response, while the impact on equity futures has been limited. It is otherwise a mixed summer Friday, with earnings […]
Inflation Meets Expectations as Energy and Metals Continue to Climb
With US inflation arriving as expected, markets have been somewhat choppy this morning, although index futures continue to point towards a positive open. Energy and metals contracts are also extending their steady climb. US consumer prices increased 3.4%, matching expectations and easing from the previous reading of 3.5%. The report indicated that inflation pressures remain […]
Crude Oil Rallies as Investors Assess US Employment Data
A strong start to the week in Asia Pacific trading has faded as investors assess last week’s disappointing US employment numbers. Meanwhile, Crude Oil is rallying again amid ongoing talks surrounding passage through the Strait of Hormuz. Over the weekend, China consumer prices came in better than expected at 3.5% (v. Street 3.8% and previous […]
Markets Rebound as Inflation Cools and China Supports Risk Appetite
North American markets look set for a firmer start to the session as investors look beyond mixed overnight trading and focus on improving risk sentiment, with NASDAQ futures leading gains ahead of the open. Technology shares are once again providing leadership as markets continue to navigate a backdrop of moderating inflation, resilient economic data, and […]
Trump Tweet Sends Stock Soaring
There has been a swift and radical shift in sentiment this morning. Early on, equities and precious metals were extending Friday’s losses amid threats of imminent attacks on Iranian energy production facilities that could further escalate the war. Just after 7:00 am EDT this morning, President Trump tweeted that based on progress in talks with […]
Energy Supply, Inflation and Interest Rate Concerns Impact Markets
For the first time since the 2011 Arab Spring, a meaningful gap has opened up between Brent Crude and US Crude. Once again, this appears to be driven by concerns about Middle East supply as attacks against energy facilities on both sides of the Persian Gulf increases. Overnight, Brent Crude took another run at $120.00/bbl […]
US Dollar Retreats Ahead of Central Bank Meetings
While the Iran War continues, investors’ focus may shift away from its impact on oil supply to its impact on inflation and interest rates. With the Strait of Hormuz still being contested, and President Trump threatening more attacks on Iran oil distribution sites, US Crude Oil is down 1.5% this morning trading near $97.00/bbl, while […]
Nonfarm Payrolls Disappointment Extends Stock Selloff
A surprise contraction in US February nonfarm payrolls (-92K vs Street +59K) has sparked another round of selling in US equities this morning. US index futures are down 0.7% to 1.0% with the NASDAQ leading the way downward. European markets are also retreating this morning, with the DAX down 0.6% and the FTSE falling 0.5%. […]
Oil and Metals Rally as Markets Assess Inflation Data
US producer prices for January suggest inflation pressures may be building, as both headline PPI (2.9% vs Street 2.6%) and core PPI (3.6% vs Street 3.0%) came in above expectations. Metals are surging this morning. Platinum is up 7.7%, while Silver is up 4.3%, Copper is up 2.1%, and Gold is up 1.0%. While hard […]
Stocks Rebound, Metals Slide as Greenland Fears Ease
Markets appeared to breathe a sigh of relief yesterday after the US and NATO agreed on a framework to discuss Greenland. This development appeared to diffuse tensions enough for the US to agree to drop the tariff increases against eight EU countries that had been planned for February 1st. Building on yesterday’s bullish reversal, where […]