A lot can happen over a weekend, including Sunday’s provocative nuclear test by North Korea. Reports that the country is now preparing to launch a new ballistic missile threaten to keep the world on edge this week and beyond. The initial reaction in stock markets across Asia and Europe: sell, which is the standard game plan of late when North Korea injects itself into global headlines. The surprise factor, however, is fading, raising the question: Will investors learn to live with the Kim Jong-un’s menacing behavior? “Like a bad horror movie, the North Korea saga intersperses moments of calm, with occasional action to jolt you out of...
Having started off with a sharp gap lower following Sunday’s news of the latest, 6th nuclear test by North Korea, global stocks and US futures pared losses in the overnight session, despite reports of North Korean preparations for yet another missile launch, while the yen trimmed its risk-off gains even as gold kept its upside and the South Korean Kospi closing 1.2% lower, with traders asking whether “this time will be different:, or inversely, will today’s market reaction will be a carbon copy of what happened last Monday, when stocks gapped sharply lower on North Korea missile launch fears, only to surge 1% by the end of ...
from the St Louis Fed — this post authored by James Bullard The unemployment rate in the U.S. is relatively low by recent historical standards. Some people argue that this means higher inflation is just around the corner, which they cite as a reason for the Fed to raise the U.S. policy rate (i.e., the federal funds rate target). In my view, however, low unemployment readings do not appear to be an indicator of substantially higher inflation to come. Arguments that low unemployment will translate into high inflation are based on the so-called Phillips curve, which suggests that a negative relationship exists between the two variables. T...
Last Thursday’s signals were not triggered as none of the key support levels were reached during that session. Today’s BITCOIN/USD Signals Risk 0.75% per trade. Trades may only be entered up until 5pm New York time today. Long Trades Long entry after a bullish price action reversal on the H1 time frame following the next touch of $4400.00, or $4185.67. Place the stop loss 1 pip below the local swing low. Adjust the stop loss to break even once the trade is $50 in profit by price. Take off 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to ride. Short Trade 1 Short entry after...
Billionaire investor Warren Buffett turned 87 on Wednesday. And on the occasion, he shared a many investment tips in interviews. With Buffet’s Berkshire Hathaway Inc. BRK-B gaining over 108% over the last five years against the SPDR S&P 500 ETF’s (SPY – Free Report) advancement of 70.5%, it is many people’s dream to follow his investment ideas. Below we highlight some. Be Big on Bank of America Warren Buffett’s Berkshire Hathaway turned out to be the largest shareholder of Bank of America (BAC) by “exercising crisis-era warrants to buy 700 million shares at below-market price” and locking in an $11.5 billion...
Share markets in India ended the day on weak note tracking mixed global cues as markets remained jittery after fresh nuclear test by North Korea and claims that it tested a hydrogen bomb over the weekend. At the closing bell, the BSE Sensex closed lower by 190 points. While, the NSE Nifty finished lower by 62 points. Meanwhile, both the S&P BSE Midcap Index and the S&P BSE Small Cap Index ended down by 0.7%. All BSE sectoral indices ended the day in negative zone. Among them, realty index fell 1.4%, followed by information technology sector 1% and banking sector 0.8%. Overseas, Asian equity markets finished mixed as of ...
My first horror tale has hit with the Schwabians who are now my main brokerage. I received from San Francisco in an envelope marked “Personal and Confidential”. It contained a letter saying that there was something I needed to know followed by a colon and a blank line and nothing more. Then Schwab thanked me for being their customer and gave a number for more information. I naturally called the number on the letter to find out what that was all about and after being on hold for 45 minutes got a human. He named a Canadian stock I and my readers had tendered which was being taken over. Asked what about this new, he said he would look into i...
Bad news, folks. The dip-buyers didn’t show up in South Korea and Japan, as both the Kospi and the Nikkei were sharply lower overnight, down 1.2% and nearly 1%, respectively: Meanwhile, the yen and gold built on gains when this hit, around 2 a.m. in New York: S.KOREA DETECTS N.KOREA MISSILE LAUNCH PREPARATION: YONHAP That pushed USDJPY down even further and probably killed any chance of a late Kospi rebound. Gold moved a bit higher as well: Oh, and regular readers will recall that we’ve variously suggested that CNYKRW (yuan-won) may be the best way to measure Korea tension given the fact that South Korean assets were already due for a p...
After touching the October 2016 high of 0.9305, EURGBP pulled back from 0.9306 and broke below the bottom support trend line of the price channel on its 4-hour chart, indicating that the upside movement from 0.8891 had completed at 0.9306 already. A deeper decline could be expected over the next several days, and the target would be at the bullish trend line on the daily chart now at around 0.9005. On the upside, as long as the price is above the bullish trend line on the daily chart, the fall from 0.9306 would possibly be a consolidation of the uptrend from 0.8313, and further rise towards 0.9400 is still possible after the consolidation. ...
The real estate investment trust (REIT) sector seems to be having a tough time due to the rising rate environment. In addition, new supply in certain asset categories and the rising trend of online purchases make the growth prospects bleak for the entire segment. Consecutive hike in the interest rates over the past three quarters has taken a toll on the profitability of REITs. This is because REITs are typically dependent on debt for business, mainly borrowing at short-term lending rates and investing at long-term yield. However, the U.S. economy has been witnessing a steepening of short-term interest rate curve, while long-term yields remain...