Image source: PixabayIn this video, Ira Epstein reviews the activity in the Financial Markets after the day that just ended, Wednesday, November 1.Video Length: 00:16:15More By This Author:Metals Report For Wednesday, November 1 SPDR ETF Report For Tuesday, October 31 Financial Markets Report For Tuesday, October 31...
Image Source: UnsplashGlobal macro and markets Global markets: If last night’s FOMC meeting was supposed to be a “hawkish pause”, then markets weren’t listening. Yields on the 2Y US Treasury note dropped 14.4bp, taking them below 5% (4.944%), and there was an even bigger drop at the longer end. 10Y yields fell 19.7bp to 4.734%, and implied rates now show a 25bp cut priced in at the June meeting in 2024. FX markets are still a bit mixed and may spend today catching up with the implications of the drop in yields. EURUSD is fractionally higher at 1.0582, having drifted lower for most of yesterday. The AUD is looking stronger, probably ...
Image Source: PixabayNew orders up, backlogs down, employment down, inflation up. Index at 50, kiss your mother. As with the regional surveys, the takeaway here as the Chief Economist of S&P Global says, “conditions stabilize.” There is not a good gauge on direction here.S&P Global PMIISM Manufacturing came in at 46.7, again below 48.7 the baseline for contraction/expansion.More By This Author:Macro: GDPNow — A Market Mover Macro: Construction Spending — It’s All About Infrastructure And Reshoring Macro: Chicago Business Barometer...
Image Source: Unsplash USD/JPY remains under some selling pressure for the second successive day amid a weaker USD. Expectations that the Fed is don raising rates and sliding US bond yields weigh on the Greenback. The Fed-BoJ policy divergence should limit gains for the JPY and limit the downside for the major. The USD/JPY pair extends the overnight retracement slide from the 151.70 area, or its highest level since October 2022 and drifts lower for the second successive day on Thursday. Spot prices currently trade just above the 150. Psychological mark, down over 0.50% for the day, though any meaningful corrective decline still seems elusive...
Image Source: UnsplashIntroduction The airline sector is notably turbulent, with carriers like JetBlue Airways (JBLU) facing headwinds from various fronts. Analyzing JetBlue’s recent financial performance and operational hurdles presents a scenario that merits a “Sell” recommendation. Here’s an analytical breakdown of the factors contributing to this stance: Financial Discrepancies: 1). Earnings Misfire – JetBlue’s Q3 per-share loss of 39 cents and a revenue dip to $2.35 billion underscore a misalignment with market expectations. The deviation amplifies concerns over its profitability trajectory, especially ...
Image Source: UnsplashThere is a big obsession about the Fed being done raising rates. If you listened to today’s press conference, it would seem that the risk is that they are not done, and the problematic part is that they seem to be entirely data-dependent at this point, with really no plan or course of action. Powell made it fairly clear they aren’t even confident that rates are sufficiently restrictive at this point. If the Fed isn’t sure if the policy is tight enough, then it would seem the odds favor the Fed overstaying their welcome or overtightening. Because, at this point, the market still sees rates staying above 3% on hea...
Image Source: PixabayIn this video, Ira Epstein reviews the day’s trading in the gold and other relevant metal markets.Video Length: 00:08:58More By This Author:SPDR ETF Report For Tuesday, October 31 Financial Markets Report For Tuesday, October 31 Metals Report For Tuesday, October 31...
Image Source: PixabayThe Fed is not thinking about interest rate cuts. But what about hikes?Wolf Richter at Wolf Street has a different interpretation of the Fed’s Press Conference than I do. The difference isn’t radical, but I would not call today’s meeting or press conference particularly hawkish.Wolf Street: Another Hawkish HoldThat’s a nice chart by Wolf. So, how much longer?Please consider Another “Hawkish Hold” with Tightening Bias: Fed Keeps Rates at 5.50% Top of Range, Rate Hike Still on the Table. QT Continues Higher for how much longer? The end of the rate hikes is typically followed by plateaus before rate cuts begin....
Image Source: UnsplashJuniper Networks Inc (JNPR) designs, develops, and sells products and services for high-performance networks. These products and services enable customers to build scalable, reliable, secure, and cost-effective networks for their businesses, while achieving agility and improved operating efficiency through automation.The company’s high-performance network and service offerings include routing, switching, Wi-Fi, network security, artificial intelligence (AI) or AI-enabled enterprise networking operations (AIOps), and software-defined networking (SDN) technologies.In addition to the company’s products, the com...
Image Source: Pixabay Gold price attracts some buyers after the Federal Open Market Committee (FOMC) rate decision. FOMC maintained the monetary policy unchanged at 5.5% at its November meeting. Gold traders will focus on the weekly Initial Jobless Claims ahead of Friday’s Nonfarm Payrolls (NFP). Gold price (XAU/USD) stages a modest recovery during the early Asian session on Thursday. The rebound of precious metal is bolstered by a decline in the US Treasury bond yields following the the Federal Open Market Committee (FOMC) policy meeting. As of writing, gold price is trading higher on the day at $1,985.Meanwhile, the US Dollar Index...