Will COVID-19 Force the Fed’s Hand?
The Federal Open Market Committee (FOMC), which cut rates 75 bps in 2019, has kept its target range for the fed funds rate unchanged at 1.50% to 1.75% since October (Figure 1). Moreover, the so-called “dot plot” suggests that most...
UK 100 Index Slumps Below Long-Term Supportive Trendline
The UK 100 stock index slumped below the supportive trendline that has been holding since the end of 2018, increasing concerns that the market may be changing direction to south. The downside reversal in the RSI, which is currently heading towards its 30...
European Markets Crash on Coronavirus Outbreak in Italy, Risk Aversion Intensifies
Global markets are clearly in deep risk-off mode today. In particular, with the sudden explosion in coronavirus cases in Italy (150 infections and 4 deaths), European stocks are suffering their biggest plunge since 2016. Italian stocks leads the decline, down...
The Netflix and Spotify tax: States are making streaming services more expensive
Your monthly bill for Netflix and Spotify may be going up. States are trying to capitalize on Americans’ growing fervor for digital consumption of movies, TV, music and other media content by taxing monthly subscriptions for streaming entertainment services. That...
Buffett sees economy ‘a little softer,’ says several Berkshire businesses impacted by coronavirus
Billionaire Warren Buffett said Monday that while the U.S. economy still looks healthy, it isn’t as robust as it was even half a year ago thanks to headwinds like the Trump administration’s trade war and the burgeoning coronavirus. “It’s strong,...
JP 225 Index Collapses To 4-Month Low, 200-SMA Acts As Support
Japan’s 225 stock index (cash) collapsed on Monday as the coronavirus cases outside China increased, shifting funds towards safe havens. The index dived straight to the 200-day simple moving average (SMA) to 4-month lows, losing nearly 4.0% From Friday’s closure....
New products help institutions take exposure to surging bitcoin
Bitcoin has performed strongly this year, with the price up 40% to mid February, as equity markets have been growing increasingly nervous about the impact of coronavirus on top of trade tensions and slowing growth. New vehicles for institutional investors...
Risk Aversion Deepens as China Coronavirus Spreads Quickly to other Countries
Risk aversion deepens in global financial markets today as China’s Wuhan coronavirus is clearly spreading to other countries. Gold surges to seven-year high on safe haven flow while Asian stocks are generally pressured. The currency markets are relatively quiet though...
Gold At 7-Year High On Virus Fears
Gold spiked higher this morning with safe haven demand intensifying as the global spread of CoVid-19 continues. Equities came under pressure and risk-beta currencies were pressed lower. European lockdown? The number of CoVid-19 cases in Italy spiked at the weekend,...
Coronavirus could spark a 20% tech pullback, investor Paul Meeks warns
Investor Paul Meeks is bracing for a bear market in technology. Meeks, who’s known for running the world’s largest tech fund during the dot-com boom, sees 20% pullback risks growing as the coronavirus outbreak spreads. “There is some comeuppance due,...