- For market watchers the?best case?scenario is for?macro news to be good enough to allay earnings unease but not-so-good as to ignite rate hike fears. The macro news has tentatively obliged this week.????????????????????????????????????????????????????????????????????????????????????????
- US?initial job loss claims?at 262,000 was slightly higher and?continuing claims?increased marginally by 8,000 pointing at macro resilience BUT labour is the stickiest component of inflation and its continued strength raises concern.?
- On the flip side, US?existing home sales dropped for a sixth week?showing softness in a key sector of the economy BUT home prices, a significant part of the inflation basket, eased and?US 30-year mortgage rates fell for a third week to 5.13%?(it was 2.86% last year though). Reflecting this two-paced news,?VIX?has been in a?tepid range of 19-20?for the entire week.
- But the?no-news no-movement market is like a taut tug-of-war rope. Bears and bulls are evenly matched and are pulling with all their strength. One event or data point could dramatically shift the balance.?Watch this space.
- Have a great weekend and here’s wishing you a smidgen of?Jake Freeman’s?good fortune; the 20-year old USC student made?$110million in just over a month, on his stake in?Bed Bath and Beyond.
Disclaimer: views and commentary are as at the date of which it is published and the company is not obligated to issue any communication should this view or commentary vary, differ or diametrically change and the reader should assume that the information is not up to date and shall not make reliance on the information for any investment decision.?
