From the ashes

April 16, 2019

–Little movement in rates yesterday.  Market events were overshadowed by the heart-breaking fire at Notre Dame at this time of resurrection. 

–This morning, US stocks are responding to a surge in Chinese shares, with Shanghai Comp bouncing nearly 2.4%.  

–Brexit talks continue to drag on.  The original vote was June 23, 2016, nearly three years ago.  At that time SPX tested 2000, now 2900.  GBP traded down to around 1.30 before making an ultimate low in fall of that year below 1.20.  It’s now 1.3078.

–It was Chicago Fed’s Evans turn to communicate the central banks’ new and improved plan to let inflation overshoot.  He said rates could stay here until fall of 2020.  Once again, markets tend to interpret that message as, “Oh, the Fed wants stocks to go higher.” No matter how nuanced the communication strategy, some things can’t be ‘fixed’ with monetary policy.  As surprising as it may seem to some, the shares of companies that lose money might still decline.  Lyft now down 22% from its IPO price.  A bear market.  

–Industrial Production today expected -0.2.    

Posted on April 16, 2019 at 4:58 am by alexmanzara · Permalink
In: Eurodollar Options

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