In the News: On Brexit

Since Thursday’s “Leave” vote emerged as the British people’s desire, most markets have dropped. The S&P 500 is down 5% as of this writing, and the FTSE 100 is down around 5.5%. The Euro, GBP and Yen are down, while the USD has gained. Ratings agencies have reduced the credit ratings of the UK, and given … Read more

Week in Review 5/15/2020

SP500 ends week lower despite positive days on Thursday and Friday. US officials have pledged additional stimulus in the face of continuing macroeconomic deterioration. 10 yr Treasuries remain constrained, as does the broad Dollar Index. Fed Fund rate remains near zero. Stimulus costs are starting to materialize in data. US housing sector indicators reflect decline … Read more

Week in Review 5/8/2020

Headline of week, highest level of unemployment in US since Post-war Era. However, SP500 gains back losses from previous week. US money supply confirmed to be increasing steadily since mid-March. FED seems successful at satisfying crisis dollar demand up to now. FED repo purchases back on on upswing. Commodities improve across the board, including oil.

Week in Review 5/1/2020

SP500 ends week on selloff after US GDP officially confirmed that have contracted Q1 2020. Initial jobless claims at 3.8 million, and ISM PMI confirms drastic change in manufacturing levels. Housing starts and new building permits paint grim picture for the US housing market as well. FED continues expanding CB swap line programs as dollar … Read more

Week in Review 4/24/20

Equity markets not moved much on week, as economic releases are relatively on par with expectations. Risk seems to settle on current levels. US to begin moving towards a reopening in May. Headlines to start the week were on certain oil contracts closing negative before rolling. Opec prices dipped below $15 a barrel on the … Read more

Week in Review 4/17/20

Initial jobless claims still at record levels with 5.2 million applications. 10 yr Treasuries end week back near April lows. SP500 closes week with modest gains. FED asset purchases soften this week, most significantly in Repo purchases. Treasury curve weakens, most notably in the short end. AAA credit spreads return to pre-outbreak levels, but junk … Read more

Week in Review 4/10/20

Covered equity indices seem to be on upswing, perhaps on hopes that the COVID cases are flattening and on a softening US dollar. The gains seem to be slowing around similar zones of structure, though the holiday weekend may be playing a part. Another economic headline on the week was the jump to 6.6 million … Read more

Week in Review 3/27/20

Markets continue to settle. Global equity saw growth for most of the week with momentum dying on Friday close. Credit spreads tighten, but remain at high levels. Dollar experiences continued decline after a strong first half of march. Commodities continue rebound as well, with Wheat futures breaking January highs. Oil drops below $30 a barrel … Read more