The dramatic plunge in the pound and Gilts is unbelievable and to the point where at least the pound is likely a buy. The 14 day RSI is down to just 15 and the 7 day is at just 8. The 14 day is matching the lowest since March 2020 and January 2016 before that which was a few months before the Brexit vote. The 2 yr Gilt yield is spiking by 58 bps and is now up 100 bps …
Succinct Summation of the Week’s Events – 9/23
Positives 1)The Fed continues on with its commitment to lower inflation. 2)We also saw hikes this week from the BoE (50 bps as expected), the SNB (75 bps as expected), the Riksbank (100 bps, 75 bps expected), the Norges Bank (50 bps as expected), the Bank of Indonesia (50 bps vs 25 bps that was expected), the central bank in Taiwan (12.5 bps as expected), the …
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US PMI
The US composite September PMI bounced to 49.3 from 44.6 with manufacturing up by .3 pts m/o/m to 51.8 and services rebounding back to near 50 at 49.2 from 44.6 last month. With services, new orders rose from August but “The upturn was only slight overall, as reports of strong inflation and interest rates hampering sales persisted. In contrast to a rise in total …
Poof, gone
It's again all about bonds and the dollar driving things and the moves are really getting violent. Starting in Asia, the Australian 2 yr yield spiked by 25 bps to 3.38%, a 10 yr high. Their 10 yr yield was up by a like amount. The UK 2 yr is skyrocketing by 35 bps and is up 74 bps this week alone to 3.88%, a 14 yr high. The 10 yr yield is up by 24 bps to 3.74%. The …
Claims data, “a real battle for talent”
Initial jobless claims totaled 213k, 3k less than expected and last week was revised down by 5k to 208k. This brings the 4 week average down to 217k from 223k and that is the lowest since early June. Continuing claims fell back below 1.4mm at 1.38mm, about 40k less than expected and down from 1.4mm in the week prior. Bottom line, it is seemingly clear that …
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A bunch more hikes today/Japan intervenes/Turkey cuts again
Following the Fed rate hike, we saw hikes today from the BoE (50 bps as expected), the SNB (75 bps as expected), the Norges Bank (50 bps as expected), the Bank of Indonesia (50 bps vs 25 bps that was expected), the central bank in Taiwan (12.5 bps as expected), the Hong Kong Monetary Authority (75 bps as they match the Fed) and the BSP in the Philippines (50 bps as …
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Peter is the Chief Investment Officer at Bleakley Advisory Group and is a CNBC contributor. Each day The Boock Report provides summaries and commentary on the macro data and news that matter, with analysis of what it all means and how it fits together.