Stocks Rising into Final Hour on Central Bank Hopes, Stable Energy Prices, Short-Covering, Utilities/Metals & Minig Sector Strength
Broad Equity Market Tone:
- Advance/Decline Line: About Even
- Sector Performance: Most Sectors Rising
- Market Leading Stocks: Underperforming
Equity Investor Angst:
- Volatility(VIX) 11.20 -7.13%
- Euro/Yen Carry Return Index 144.56 +.09%
- Emerging Markets Currency Volatility(VXY) 6.26 -1.88%
- S&P 500 Implied Correlation 49.26 -4.78%
- ISE Sentiment Index 135.0 +15.38%
- Total Put/Call .75 -7.41%
Credit Investor Angst:
- North American Investment Grade CDS Index 58.94 -1.68%
- European Financial Sector CDS Index 62.0 -.70%
- Western Europe Sovereign Debt CDS Index 30.54 +4.11%
- Asia Pacific Sovereign Debt CDS Index 79.90 -.12%
- Emerging Market CDS Index 248.76 -2.83%
- China Blended Corporate Spread Index 309.71 -.86%
- 2-Year Swap Spread 16.0 +1.25 basis points
- TED Spread 21.0 +1.0 basis point
- 3-Month EUR/USD Cross-Currency Basis Swap -11.75 +1.25 basis points
Economic Gauges:
- 3-Month T-Bill Yield .02% -1 basis point
- Yield Curve 214.0 -3.0 basis points
- China Import Iron Ore Spot $90.30/Metric Tonne +1.12%
- Citi US Economic Surprise Index -11.50 +.1 point
- Citi Emerging Markets Economic Surprise Index -9.90 -.1 point
- 10-Year TIPS Spread 2.22 +1.0 basis point
Overseas Futures:
- Nikkei Futures: Indicating +55 open in Japan
- DAX Futures: Indicating +39 open in Germany
Portfolio:
- Slightly Higher: On gains in my medical/retail sector longs
- Market Exposure: 50% Net Long
1 comment:
In Wednesday June 18, 2014 marketplace trading, Nation Investment, World Stocks, Junk Bonds, Emerging Market Bonds, and Emerging Market Local Currency Bonds, soared to new highs as investor continued risk on investing and pursuit of yield investing on Janet Yellen comments.
Investors drove Equity Investments strongly higher on comments from Janet Yellen on the lack of any over valuation, by rebounding economic activity, by the expectation of economic expansion to proceed at a moderate pace, and by the recent inflation data as heading towards the Fed’s target.
Reuters reports Fed Keeps Faith In Recovery. At an afternoon news conference, Fed Chair Janet Yellen provided a long list of reasons for short run confidence, from resilient household spending to an improving jobs market. Though officials slashed their growth forecast for 2014 from 2.9 percent to a range of between 2.1 percent and 2.3 percent, Yellen said that was the result of "transitory" factors like a severe winter and that a rebound was underway.
"Economic activity is rebounding in the current quarter and will continue to expand at a moderate pace," she said. "The economy is continuing to make progress towards our objectives" of full employment and 2 percent inflation”
But Yellen said there had been "a slight decline of projections pertaining to longer term growth" that prompted Fed officials to lower their view of the expected long-term federal funds rate from 4 percent to 3.75 percent. That is below the 4.25 percent historical level identified
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