Newsclips
Tighter Financial Conditions a Threat to Banks
April 6, 2018
Financial sector investors appear sanguine about flattening in the Treasury curve. Tighter financial conditions may present a more serious threat to performance.
Financial sector investors appear sanguine about flattening in the Treasury curve. Tighter financial conditions may present a more serious threat to performance.
Investors are sending flows to short-term U.S. treasuries while shedding equities at their greatest rate in history according to ETF flows. This 'flight-to-safety' is not similar to the 'risk-on/off' conditions very familiar to traders over the past decade.
With the payroll number missing expectations, many were quick to blame March's unusual snowfall in the Northeast. Unfortunately, the statistics do not back up this opinion.
Waning Eurozone economic data is now being exacerbated by worsening soft, survey-based data. The Eurozone's pace of improvement in soft data is falling below that of the U.S. for the first time since March 2017.
The threat of zombie companies denting high yield corporates grows as interest rates rise.
Today's topics include the trade war, central bank reserves, concerns for corporate America, the Bund's tight trading range, American states in crisis, stock market bears, machine learning and LIBOR.
Powell and gang are expected to have muted responses to financial market turmoil, unlike their recent brethren. The rise of inflation as the Federal Reserve's main focus over financial stability is a very important development, implying the 'Fed put' is likely much further away than expected.
Converging economic growth and diverging realized inflation favor a stronger Canadian dollar and U.S. Treasury outperformance.
Despite lingering winter weather in parts of the U.S., the payroll report is unlikely to be abnormally affected.
Today's topics include jobs and inflation, slowing Eurozone growth, the Venezuelan bolivar, tariffs' effect on jobs, Chinese selling of Treasuries and market timing.