Markets

Futures, Global Markets Hit Record High Amid Unstoppable Trader Euphoria

Global stocks and US equity futures rose to a fresh record high on – what else – optimism that a firehose of fiscal spending will revive economic growth and bolster corporate earnings, which coupled with more pandemic relief and speedy vaccine rollouts under the new Biden administration would lead to continued risk upside. Investors also…

What Could Yellen Say To Move Markets During Nomination Hearings Tomorrow?

Janet Yellen’s nomination hearings, which begin tomorrow at 10amET, are sure to be the usual parade of partisan back-slapping and gotchas. It is clear from leaked remarks which direction she is heading. Bloomberg reports that the former Fed head will tell the committee that the U.S. economy has been suffering from entrenched inequality – and…

Global Markets, S&P Futures Flat With US Markets Closed For MLK Holiday

US cash markets may be closed for Monday’s MLK holiday, but US equity futures are humming and at last check they were unchanged from Friday’s close at 3, 762 after earlier dropping as much as 20 points. “Markets needed a breather or even a pull back to justify reflationary expectations,” said Ben Emons, managing director of…

Spanish Energy Markets Roiled Amid Chilling Temps

A cold snap across Spain is expected to last through mid-January has resulted in natural gas prices more than doubling in the last week, according to Bloomberg. LNG prices trading at Spain’s Punto Virtual de Balance (PVB) gas trading hub hit a record 51.55 euros ($63.13) a megawatt-hour this week, or $18.54 per million British thermal units…

In Surprise To Markets, BOJ Buys Smallest Amount Of ETFs In Four Years

The Bank of Japan bought just 50.1BN yen of ETFs on Monday – the first day of 2021 – the smallest amount it has bought in more than four years on a day when it has made a purchase as part of its ETF buying program. The reason this is notable is two-fold: i) it…

Only One Number Mattered To Global Markets In 2020

Authored by Robert Burgess, op-ed via BloombergQuint.com, When it came to financial markets in 2020, the most frequently asked question was why. Why, in the midst of a global pandemic that has killed some 1.7 million people worldwide and plunged the economy into the worst crisis since the Great Depression, did equity markets stage a historic rebound to reach…

Danger Ahead as Markets Detach from Fundamentals

By Clint Siegner Americans may start the New Year without certainty as to who will be sworn in as president on Inauguration Day. President Donald Trump and his supporters can’t find courts willing to consider their evidence of widespread voter fraud. Trump is not likely to concede. The battle continues in the courts and in…

2020 Is Ending With 93% Of Global Economies Contracting … With Markets At All Time Highs

By Tyler Durden As BofA’s European credit strategist, Barnaby Martin, puts it in one of the final issues of his European Credit Strategist report for the year, “2020 is ending with one of the most predictable and potent themes of the last decade: central bank activism.” Case in point: on Thursday the ECB doubled down…

2020 Is Ending With 93% Of Global Economies Contracting… And With Markets At All Time Highs

As BofA’s European credit strategist, Barnaby Martin, puts it in one of the final issues of his European Credit Strategist report for the year, “2020 is ending with one of the most predictable and potent themes of the last decade: central bank activism.” Case in point: on Thursday the ECB doubled down on more of…

JPMorgan Warns Crowded Trades And Euphoric Consensus Are The Biggest Threats For Markets

Last month, during our 13-F postmortem, we showed that just as hedge funds had gone all-in stocks, or rather a handful of momentum stocks, resulting in record gross and net hedge fund leverage… … which also meant a record drop in S&P short interest as any remaining bears have been ritualistically slaughtered in the last…

No, Low Rates Do Not Lead To Higher Earnings Multiples: What That Means For Markets

With the S&P closing Friday at a new record high just shy of 3,700, which as we showed last week translates into a Shiller CAPE ratio now above levels where it was on the eve of the crash of 1929 for the first time since the dot com bubble… … even Goldman has been forced…

A Tale Of Two Markets: Visualizing The Huge Impact Of The Covid Vaccine Across Assets

The story of the market since the March lows has been one of two parts, the first of massive FAAMG/tech/growth/momentum outperformance, and a second one in which value and cyclicals was burst higher; the only question is where does one put the bifurcation point. According to one strategist, Deutsche Bank’s FX strategist Alan Riskin, that…

Investing When Markets Detach From The Economy

Authored by Lance Roberts via RealInvestmentAdvice.com, “The stock market is not the economy.” Such remains the “Siren’s Song” of investors as valuation expansion is the sole driver of the market’s performance. Given that corporations derive their revenue from economic activity, how do you invest when the economy is detached from the economy? I explored this issue in my…

Horseman: “The Bond Bull And Commodity Bear Markets Are Over” – Here’s How To Trade It

After a remarkable start to the year, surging almost 30% when all other funds were tumbling, the fund formerly known as Horseman Global until its recent purchase by CIO Russell Clark (hence its current name Russell Clark Investment Management), has had a turbulent seven months, at one point in the summer even forcing the famously…

Morgan Stanley: “There Is A Way For Markets To Know Relatively Quickly Who Is The Next President”

As discussed earlier, the record-shattering growth in vote-by-mail which means that the bulk of votes in key battleground states has already been cast… … is likely to distort the pattern of vote counting and reporting on election night that we’ve become accustomed to. And, as we also touched upon in an earlier post, there’s potential…