Stock Markets Sink, Suggesting Global Rout Will Go On

10 February, 2018, 09:49 | Author: Teresa Adams
  • Global stockmarket indices

Treasury yields moved higher on the day.

Similarly, between May 2003 and June 2006, a 177 bps surge in the UST 10-year yield failed to deter United States equities from notching up 32 per cent gain.

Britain's 10-year yield climbed eight basis points to 1.634 percent, the highest in more than 21 months on the biggest surge in more than five weeks.

"A big down day like Monday doesn't just go away".

Now let us look at the trailing market valuations (P/E) and bond yields. U.S. 10-year Treasury yields climbed above 2.8% this week, the highest since early 2014. Jobless claims are released Thursday morning at 8:30 a.m. ET, but there's no major data until CPI and retail sales data next Wednesday.

Norway's Winter Olympics team chefs accidentally order 15000 eggs instead of 1500
Chef Ståle Johansen said the kitchen team would be cooking "almost 24 hours a day" to feed the athletes their rigorous diet. That won't be necessary. "Absolutely unbelievable." Fortunately the team were allowed to return the 13,500 unwanted eggs.

When the macro-economic situation deteriorates, investors seek more return on bonds to compensate for the risk involved.

Yields in the belly of the curve are down about 10 basis points. "Now they are saying we will take out the steroids, because it could have side-effects", said Nilesh Shah, MD at Kotak AMC. The unemployment rate was at a near 17-year low of 4.1%. Traders were bored out of their minds for much of 2017, when Treasury yields fluctuated within the tightest range in a half-century.

"You could get into a little bit of circular logic here, as you hand leadership back and forth".

Yet another Federal Reserve official said today that the central bank is not spooked by stock market fluctuations.

Nevertheless, experts are sticking with the mantra that bonds will be safer than stocks and that investors can continue to count on them as a stabilizing force for their portfolios.

Southwest flight leaving BWI slides off runway
BWI officials say that as the aircraft was taxiing out, it turned and stopped near the taxiway pavement edge, where it remains. A Southwest Airlines plane almost went off the runway Wednesday morning just before it was set to depart from BWI Airport.

"There's going to be an interplay, a bit of push and pull between the rates market and equity market", said Mark Cabana, head of US short rate strategy at Bank of America Merrill Lynch. The pullback came amid another spurt higher in Treasury bond yields, a focal point for investors concerned that the Fed may accelerate rate hikes if inflation rises suddenly.

The Schwab U.S. Dividend Equity ETF (SCHD.K), one of the biggest exchange traded funds providing exposure to dividend "aristocrats" - stocks which have 25-year histories of annual dividend raises - is up about 9 percent, outperforming the broader market slightly.

"It's just the latest log on the fire", said Schumacher. This week's Treasury auctions have underwhelmed, raising the prospect that the debt selloff could steepen. Bond yields are rising as the Federal Reserve trims its U.S. bond holdings. The Treasury offers $26 billion 3-year notes Tuesday. "They won't be able to provide that nice predictability and certainty that they provided ever since they started the rate hikes a few years ago". As the thinking goes, higher interest rates will lead to tighter financial conditions, constricting the flow of capital, reducing the demand for equities.

"The cause of this correction is the ostensibly withdrawal of liquidity by central bankers, and consequently rising interest rates". If someone has a bad night's sleep, it's going to affect other people.

"We continue to argue that accelerating inflation, robust growth outlook and expansive financial conditions facilitate continued Fed rate hikes (we now expect four this year) and together with an increasing bond supply speaks in favor of higher USA rates", said Lina Fransson, fixed income strategist at SEB in Stockholm, in a note. Both industries are capital-intensive, requiring frequent loan rollovers and bond issues, so higher borrowing costs have outsized effects on bottom line profits.

Ronda Rousey Signs Full-time WWE Contract
The match began in 1988, and for all of the thirty previous Rumbles only men had gotten to do the match . Rousey and Piper share the same judo coach and have become good friends.



LL Bean Changes Lifetime Guarantee to One-Year Return Policy
Bean said in some cases, people are trying to get a refund for something they bought second-hand at a yard sales. Bean customers will have one year after buying an item to return it, and you have to have proof of purchase.

Trudeau makes pitch to Silicon Valley, Amazon to invest in Canada
The company did not answer the question about whether the immigration policies in the two countries influenced the decision. In the audience was a group of Midwest students and officials, some of whom are skeptical that trade would help them.

Suspect in National Football League player's death has DUI conviction
For the second time in seven days, President Trump has used the pain of others as a ploy to push his racist immigration policies. Scott Rolston of Whitestown Police said the department generally would not communicate with ICE for a typical traffic stop.

Mohamed Salah: I want to win the Premier League's Golden Boot
Chairman Bruce Buck said that Chelsea "will be taking a strong squad" for the match at the Optus Stadium. Elneny said in an interview with beIN Sports: "There's nothing impossible in the English Premier League".

Making stocks that will influence your buying rate: Activision Blizzard, Inc. (ATVI)
Activision Blizzard, Inc (NASDAQ: ATVI ) closed at $67.98 after the last trading day, drawing interest from investors and traders. It improved, as 15 investors sold WES shares while 50 reduced holdings. 33 funds opened positions while 77 raised stakes.

Maruti Suzuki Swift: Brand new TVC released in India
The model is the first to be launched under Maruti's Arena network, described as "more inclusive and digital" by Kalsi. The entire Swift production has been shifted to Suzuki's Gujarat plant, while the Baleno will now be made at Manesar.

LeBron James knew before Dwyane Wade was traded to Heat
Wade returning to South Florida to presumably end his career wearing his true colors is, just as Carmelo Anthony said, only right. Wade's wife, actress Gabrielle Union , tweeted her excitement saying, "HOME!' Let's gooooooooooo HEAT! Welcome home", they wrote.

New Air Campaign Expands to the North > U.S. Central Command
In addition, he said , US forces had added A-10 attack planes and will soon be adding more search-and-rescue aircraft. Nicholson said the Taliban has three choices, "Reconcile [with the Afghan government], live in irrelevance, or die".

S. African deputy president confirms discussing with Zuma over his "stepping down"
Zuma still retains the support of a faction within the ANC but has seen several prominent party allies desert him recently. They've started calling it "Zexit" here - the long, fractious process of nudging President Jacob Zuma out of his job.

West Ham refute report on Moyes' future
Arthur Masuaku is serving a six-game ban for spitting, so Evra is likely to come in as an experienced back-up for Aaron Cresswell. PATRICE EVRA can not hide his smile as he gets stuck in at West Ham training ahead of a Premier League return.