Morning Briefing
Stocks slide, bonds rally on pessimism of a thousand cuts
Stocks were down this morning with the Standard & Poor's 500 falling 1.01% as of 1 p.m. New York time and bonds were up with Treasury prices climbing to send the yield on the 10-year Treasury down 8 basis points to 1.64%. The move down wasn't the result of a...Markets settle at default reading
Some days U.S. stocks move decidedly higher on positive news about the global economy or speculation that the U.S-China trade war may be moving toward a negotiated resolution. Other days U.S. stocks head decidedly lower on bad news about the global (or U.S.) economy...
Financial markets still showing signs of indigestion in debt auctions so Fed will pump another $75 billion into money markets tomorrow
Tomorrow, Friday, September 20, the Federal Reserve will buy another $75 billion in the overnight repo market. That brings the total this week to $203 billion in the Fed's effort to stabilize the short-term markets that Wall Street uses to finance its purchases of...Another forecast for lower growth in global economy
Today, September 19, the OECD (Organization for Economic Cooperation and Development) cut the growth projections it had made for the global economy just four months ago. The world economy is forecast to grow at just a 2.9% rate in 2019 and 3.0% in 2020 after growing...
With injection today of $75 billion into money markets Fed attempts to regain control of short-term interest rates
If $53 billion doesn't work, try $75 billion more. The Federal Reserve injected $75 billion into U.S. money markets today after yesterday's injection of $53 billion didn't solve the problem. The problem is that the big Wall Street banks are finding that digesting a...
If one Fed $53 billion intervention to supply cash to money markets is good on Tuesday, wouldn’t a second $75 billion surge of cash on Wednesday be even better?
On Tuesday the Federal Reserve intervened to supply liquidity to the short-term market for Money Market funds by buying $53.2 billion in securities. Late Tuesday the Fed said it was prepared to buy another $75 billion in the report market Wednesday morning. The...
This is important: Federal Reserve spent $53.2 billion on Tuesday to stabilize Money Market markets
On Tuesday the Federal Reserve bought $53.2 billion of short-term securities to stabilize the market for money market securities. A funding shortage on Monday and Tuesday had led rates on overnight general collateral repurchase agreements to climb as high as 10% and...
Oil pops more than 10% on drone attack in Saudi Arabia–where does it go from here?
Oil prices are higher--much higher--today after a drone attack on Saudi Arabia's Abqaiq processing center knocked out 50% of the country's oil production. As of 1 p.m. New York time U.S. benchmark West Texas Intermediate was up 13.58% to $62.30 a barrel. International...The financial markets–and especially Treasuries–continue their September trend reversal
One way to understand of the recent market action--one way that makes sense to me--is to think of it as a big short squeeze. The drop in Treasury yields and the climb in Treasury prices went to far in August with Treasuries showing their biggest monthly gain in the...With luck and slight of hand, Draghi restarts quantitative easing at European Central Bank
If it had come to a formal vote, there's a good chance that European Central Bank President Mario Draghi would have faced defeat in his efforts to revive quantitative easing at the central bank. But the bank doesn't usually hold a formal vote on a issue like this and...
Bolton departure from White House sends oil tumbling
The resignation/firing of John Bolton, a long-time advocate of military action against Iran, as National Security Advisor to President Donald Trump, has send oil prices tumbling today. U.S. benchmark West Texas Intermediate is down 2.42% to $56.01 a barrel....Jim’s Stock Alerts
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