The 18-month plunge in global oil prices continues unabated. The price is now below $28 per barrel, thanks to even more supply streaming in from Iran. The International Energy Agency warns that the oil market “could drown in oversupply.” The collapse in the oil price has gotten so bad, some sources report that the Fed has…
The value of the offshore yuan vs. the U.S. dollar continues to sink following a brief intervention respite by Chinese authorities. Yuan Bears Swamp People’s Bank of China China needs to float the yuan and let the currency get where it’s going to go because intervention never works. It just drains reserves, ultimately making matters…
S&P 500 The S&P 500 fell rather significantly during the course of the session on Tuesday, testing the 1900 level for support. It did find a bit of support there, so if we can get a bit of a bounce I think that this market will probably head back to the 1940 handle. It’s not…
In 2015, the stock market’s valuation was widely downplayed. But why would market watchers do such a thing with the U.S. stock market trading at its richest valuation in more than a decade? Well, in order to recommend an overweight position in U.S. equities or an underweight position in fixed income, pundits almost had to disregard valuation….
“…emerging markets experienced a more recent run-up in indebtedness, which started around the time of the crisis, and is still continuing. In other words, their deleveraging has not even begun. This has the potential to create persistent spending disappointments, if monetary policy is unable to stimulate other spending sufficiently.” – “Debt, Demographics and the Distribution…
Economic activity in the world’s largest economy has continued to grow – that’s the good news. The bad news is that the rate of expansion has slowed dramatically over the level in Q3. The US economy managed expansion of 0.7% in Q4 over the same period in 2014, but this is down sharply on the…
Government regulations are no match for Indians’ love of gold. Try as it might, the Indian government has been unable to stem the tide of costly gold imports, nor stop Indians from hiding billions of dollars in undeclared “black money” by investing in the yellow metal. The latest attempt was a requirement that buyers of…
Both major pairs have interesting patterns emerging on them. The team at RBS explains: Here is their view, courtesy of eFXnews: The EUR/USD medium-to-long technical picture has been bearish for a while with a bear flag triggered pointing to the targets as low as 1.05 and 1.01 (with a possibility of extending a dip to…
Oil is once again ongoing a severe drop in value with the prices now under $30 after rebounding to 34.70 last week. As a result, US stocks underwent through a sharp selloff with DJI dropping -1.8% and SP500 -1.87%. The drop was led by energy stocks along with Financials. The risk aversion, is benefiting JPY…
Inversion! Curve Watchers’ Anonymous has had its eyes on the yield curve in expectation that portions of the curve would invert. A small inversion did happen on Tuesday when yield on 6-month treasuries briefly traded at a higher yield than 1-year treasuries. Bloomberg Screen Shot I captured the above chart at 5:00PM but similar conditions…
