PVM Wednesday bits / UST 30's / U.S new home sales / IFO / EZ eq summer box / GOLD / CROSSJPY's / JH
-Powell set to deliver ‘profoundly consequential’ speech… changing how the Fed views inflation – some discussions that this speech has been ‘leaked’ when looking at how the long-end sold off last couple of days ‘for no apparent reasons’’
- Google searches for "Covid symptoms" in FL (and other states) have led actual case counts. Search interest is now back down to pre-spike levels seen in early June (chart), Italian cruise line says it will require negative coronavirus tests from passengers
- Market is signaling that 2021 economic recovery will be 'pretty darn good,' Morgan Stanley investment chief says
- China and Russia will establish a soybean industry alliance and deepen soybean industry cooperation, China's Ministry of Commerce said on Tuesday….
- Cambridge university aims for autumn trials of coronavirus vaccine after UK funding
- Markets :
- EZ equities still in that summer box range (chart) – nothing to get excited about, yet? U.S markets continue to break new highs, QQQ has it’s odd daily dip, and seems to come back all too easily still
- 10y UST yields – new trend higher ? (chart) - US yields were higher yesterday as stocks dipped. If there's any fundamental explanation perhaps it's this: there’s still $1 trillion of sovereign debt coming to market in the months ahead & there have been small signs of indigestion at recent Treasury auctions
- UST 30’s trading back to last week lows, not trading well ahead of Jackson Hole..Overall, big picture, the FED should/will be able to control the curve out to 3-5 years if they were to introduce YCC, though the long-end (steeper curves eventually..) should find it hard to rally from here, broadly speaking, as the massive supply and possibility of even more going into the U.S election is real
- Gold (chart) – near critical tech support - / UST yields key – all about JH tomorrow and reaction into month-end
- USD overall pretty steady/rangy within short-term ranges, higher yield sin the long-end supported CROSSJPY’s last few days (usual reaction), some of them are close (again) to pretty critical key medium to long-term resistance, AUDJPY and GBPJPY (chart) only to name a couple
https://www.cnbc.com/2020/08/24/powell-set-to-deliver-profoundly-consequential-speech-changing-how-the-fed-views-inflation.html Powell set to deliver ‘profoundly consequential’ speech, changing how the Fed views inflation
Fed Chairman Jerome Powell will speak Thursday during a virtual version of the Fed’s annual Jackson Hole, Wyoming, conference.
He is expected to outline what could be the central bank’s most active efforts ever to spur inflation back to a healthy level.
“Average inflation” targeting means the Fed will allow inflation to run higher than normal for a period of time.
The effort will be the reverse of former Fed Chairman Paul Volcker’s rate hikes instituted to quash inflation in the 1980s.
https://www.home.saxo/content/articles/macro/market-quick-take---august-26-2020-26082020 Saxo - Market Quick Take - August 26, 2020
China protests at U.S. spy plane watching drills https://www.reuters.com/article/us-china-usa-security/china-protests-at-u-s-spy-plane-watching-drills-idUSKBN25L1Q2?il=0
https://www.telegraph.co.uk/business/2020/08/25/robinhood-day-traders-may-saviours-stock-market/ enough of the Robinhood critics! Robinhood day traders may be the saviours of the stock market
Far from being a danger to anyone, the Robinhood traders may well end up saving capitalism for all of us
10y UST yields in a new trend ? formed a base around 60bp
GOLD near short-term support / higher yields in the long-end would help create the possibility of a further sell-off (will all be about JH tomorrow )
U.S new homes sales - whoooza!
EZ equities - could get exciting!