As Theresa May remarked in her resignation speech, her successor will face the same challenge of finding consensus over Brexit within Parliament. So far Westminster has been able only to express what it doesn’t want, and has failed to coalesce around a way forward. The path ahead remains as uncertain… Read the article
Category: Noise corner
Domestic Chinese markets were the hardest hit, with some impact on neighbouring countries.
The… Read the article
There’s been some clamour around everybody’s favourite UK-related subject this week: Brexit and politics are once again grabbing the headlines.
Yesterday, the US yield curve became inverted. The yield on three-year Treasuries was temporarily (blink and you’ll miss it) lower than that of their two-year counterparts. This is, apparently, huge.
Many are worried because an inverted yield curve has frequently been a sign of upcoming… Read the article
I received the following chart from a broker earlier this week. It plots the trailing 12-month price return on the US stock market versus a survey of activity in the US manufacturing sector, where a score above 50 indicates expansion and vice versa.
The broker’s conclusion was straight-forward, “if you… Read the article
Markets reacted sharply to the weekend’s news that ongoing attempts to form a coalition government in Italy had collapsed after the President’s rejection of the proposed Finance Minister, prompting likely new elections later this year.
In the midst of February’s volatility most of the reasons given to explain equity market declines centred on the role of rising US bond yields and, perhaps, the exaggerating role played by exchange-traded volatility products.
Since then, equities have seen another (modest) bout of weakness (as… Read the article