NASDAQ continued to push higher last week (MAG7 or 10), while Dow Jones suffered 7 days of losses, while Asian markets struggled, HSI softer softer again this morning, given back a lot of ground since the first China package >>> now we await key EU PMI data today, IFO/ZEW tomorrow in Germany FED (25bps cut fully priced), BoJ, Norges, Sweden CB and BoE rates decision, U.S PCE Friday too
The MAG7 now account for 33% of the entire S&P 500 market cap, an all-time high
US stocks, real estate prices, BTC and National debt on all time highs with inflation above 3% for over 3years (longest period of high inflation since the early 1990's) and the FED is cutting >>> what really matters now for markets in the press conf is 2025 outlook
MS believes it is time to sell the USD as the risk-reward set up looks increasingly unfavourable. Much of the good news have been priced, with consensus, positioning, and sentiment all $ bullish >>> longs in AUD and GBP to position for dollar weakness
BofA discusses issues surrounding the US debt, which at $36 trillion, is elevated vs. history. At the same time, the fiscal deficit outlook continues to be unfavourable. That said, economic and market risk appear manageable for now, but Treasuries are likely to cheapen on an unfavourable supply-demand dynamic
France’s credit rating cut by Moody’s just hours after new prime minister appointed
“Political fragmentation” in Paris means there is a “very low probability” of reducing the ballooning fiscal deficit, ratings agency says.
World’s steepest cable car opens in Switzerland
US large bankruptcies are tracking the highest levels in 14 years
The Fed’s Game Plan on Interest-Rate Cuts Keeps Shifting - WSJ Investors widely expect a third-in-a-row rate cut this week. Officials are ready to slow—or even stop—lowering rates after that
Michael Pettis on X: "1/8 Shuli Ren: "Boosting domestic demand is now seen as the only viable way to offset Trump’s tariff blow to exports, the one bright spot in an otherwise anemic economy. In an extreme scenario, if trade tensions... https://t.co/oYP3sALzoa via @opinion" / X
Global Markets Investor on X: "🚨US MANUFACTURING JOB OPENINGS ARE PLUMMETING🚨 Job openings in the manufacturing sector fell to 465,000 in October, the lowest level since the 2020 CRISIS. Over the last 2 years, manufacturing job openings have HALVED. They are below the 2018 levels. Job market is weakening https://t.co/sG6qNe0Dkt" / X
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