You rock that baby off to sweet-dreams land and then try to place them in their crib… then, poof, they’re awake again. More stories like this are available on bloomberg.(You probably know how hard “the transfer” can go.
Gold futures rose 1.9% to $1,734 an ounce West Texas Intermediate crude rose 3.1% to $86.25 a barrel Germany’s 10-year yield declined five basis points to 1.87%īritain’s 10-year yield declined nine basis points to 3.87% The yield on 10-year Treasuries was little changed at 3.63% The Japanese yen rose 0.4% to 144.03 per dollar The Dow Jones Industrial Average rose 2.8% It’s brief and we don’t collect your name or any contact information. Will earnings disappoint and push equities to new lows? This week’s MLIV Pulse survey asks about corporate earnings. US unemployment, wholesale inventories, nonfarm payrolls, FridayīOE Deputy Governor Dave Ramsden speaks at event, Fridayįed’s John Williams speaks at event, Friday The Reserve Bank of New Zealand meets, Wednesdayįed’s Charles Evans, Lisa Cook, Loretta Mester speak at events, Thursday “For the market to continue higher, the jobs data will have to be in-line with, or short of expectations,” she added.Įlsewhere, oil surged for a second day as OPEC+ said it was considering an output cut of as much as 2 million barrels a day, a million barrels higher than previously anticipated. Lindsey Bell, chief markets and money strategist at Ally, says the bets are on a “goldilocks” labor-market report that’s “not too hot and not too cold.” “In short, we’re starting to see some things the doves can hang their hat on, but I don’t think it will be enough to stop another 75bp move in November,” wrote Neil Dutta, head of economics at Renaissance Macro Research. Markets are still mostly betting on a hike of that magnitude next month. That doesn’t mean any pivot would be imminent. Tuesday’s jobs data could reinforce the case for officials to get off the “hamster wheel” of 75 basis points sooner rather than later, said Evercore’s Peter Williams. Short squeeze has indeed been big factor behind the rebound in equities, but it’s not like traders are minimizing the potential impact of the recent economic reports on Fed thinking. At the center of the rally are most-shorted stocks, as tracked by Goldman Sachs Group Inc., which jumped over 6.5% Tuesday, handing losses for those who had placed bets against them. In fact, after raising bearish wagers in one of the longest stretches in years, short sellers are being forced to fold. “We are still in a bear market, and this could just turn out to be another relief rally.”
“While it ‘feels’ like the markets may have bottomed out - which is certainly a possibility, a small possibility, but a possibility nonetheless - it is important to not get caught in another bull trap,” Razaqzada noted. So when it comes to the explanation for the rally in stocks, traders generally prefer to stick with the idea that pessimism reached such extreme levels that a bounce would be just a matter of when.įor markets that had been “nearly one-sided,” the liquidation of those positions is a big reason to squeeze in the other direction so vigorously, said Fawad Razaqzada at City Index and. Read: Fed Telegraphs No Aussie-Style Policy Pivot in Inflation Battle The idea of a Fed pivot, however, has been met with a lot of skepticism in Wall Street - with top US officials warning that the battle against inflation will require more time. The debate over peak hawkishness intensified after a dovish surprise from Australia’s central bank and bond buying by the Bank of England. US job openings sank to a 14-month low - which may fit well with a Federal Reserve that’s worried about a hot labor market. On top of the equity short squeeze, soft economic data gave bulls a glimmer of hope when it comes to policy. climbed even after Elon Musk revived his $44 billion bid for Twitter Inc., which soared 22%. The S&P 500 had its best two-day surge since April 2020. (Bloomberg) - Stocks extended their rebound from deeply oversold levels, with traders weighing whether it would be realistic that central banks moderate their aggressive stance to prevent a hard landing.
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