Market update: Stocks a sea of red, US unemployment at 48-year low

8 Oct

by Mihály Tatár

 

 

Good Morning!

 

  • The ’new normal weekend’ – Europe begging for any information from China on its vanished- turned-out-to-be-arrested Interpol chief (imagine if this has happened to a US official); Trump successfully nominating Brett Kavanaugh to the US Supreme Court (the character assassination attempts against him turned into such a bizarre parody that it electrified the entire Republican party – Trump now campaigns against the ’radical lynch mob Democrats’); German politicians talking about a ’new unity on immigration – from now on, the focus is on skilled workers’, duh, remember back in 2015 the talk was about a temporary humanitarian action; and finally, the pro-Russian party winning Latvia’s election (!); were of course only a sideshow compared to the major investor worries:  SPX -0.55%, Nasdaq -1.16%, DAX -1.08%, MIB -1.30%, Nikkei -0.80%, Shanghai -4% – the latter despite a central bank easing, EURUSD 1.15, US 10Y yield 3.23%, Italy 10Y yield 3.50%, EURHUF 325.30, as the US unemployment rate dropped to a 48-year low on Friday (3.7% – not really Fed-dovish to put it mildly) and as Italy’s League kept on rising in the polls (now 34% without even Five Star or Forza Italia, good luck’ Brussels with waiting for the collapse of the governing coalition). In the meantime, oil traders continued to take out some profits (WTI 73.80, Brent 83.40 USD) as the talk that a US-Saudi intervention is approaching intensified (the Saudi Crown Prince commented that the kingdom is already ramping up production to offset the lost Iranian supply, and that it can further tap its reserve capacity in case its needed – this was seen as a concession to Trump, just as US gasoline prices are climbing towards 3 USD per gallon before the mid-term elections).

 

 

Have a nice week,

Mihály

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