Big day for markets--appear to recover from last weeks sell off
(ZH) "Small Caps and Nasdaq had their best day since the election/vaccine day in early Nov..."
(CNBC) “Anxiety over yields appeared largely responsible for a 3% retreat in the S&P 500 from a record high in the middle of February", Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a note published Monday."
“We expect this interruption to the equity rally to be temporary and believe investors should put the pullback in context,” he added. “The rise in yields has been led by optimism over growth, not
inflation worries, and so doesn’t yet pose a threat to risk assets.”
(ZH) "Meanwhile, before we leave equity land, there's this malarkey. The Bank of Japan (yes the central bank trades publicly), which trades on the Tokyo Stock Exchange’s Jasdaq section, surged by the daily limit of 18%, the most since 2005 on massive volume. The shares, or subscriber certificates as they’re technically called, have no real benefit, with no voting rights and offering very limited dividends."
"But “short-term retail investors don’t care about dividends, they’re looking just for capital gains,” said Tomoichiro Kubota, a senior market analyst at Matsui Securities Co. “They’ll see it as attractive so long as the share price keeps rising and there are buyers.”
But commodities tumbled (growth/inflation doubts?)..."
Market forecasting fed tightening, projects 4 rate hikes over the next 2 years..
(CNBC) “Anxiety over yields appeared largely responsible for a 3% retreat in the S&P 500 from a record high in the middle of February", Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a note published Monday."
“We expect this interruption to the equity rally to be temporary and believe investors should put the pullback in context,” he added. “The rise in yields has been led by optimism over growth, not
inflation worries, and so doesn’t yet pose a threat to risk assets.”
(ZH) "Meanwhile, before we leave equity land, there's this malarkey. The Bank of Japan (yes the central bank trades publicly), which trades on the Tokyo Stock Exchange’s Jasdaq section, surged by the daily limit of 18%, the most since 2005 on massive volume. The shares, or subscriber certificates as they’re technically called, have no real benefit, with no voting rights and offering very limited dividends."
"But “short-term retail investors don’t care about dividends, they’re looking just for capital gains,” said Tomoichiro Kubota, a senior market analyst at Matsui Securities Co. “They’ll see it as attractive so long as the share price keeps rising and there are buyers.”
But commodities tumbled (growth/inflation doubts?)..."
Market forecasting fed tightening, projects 4 rate hikes over the next 2 years..
Asian and European markets dropped, and US equity futures slid after Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission and central bank party secretary, said that bubbles in U.S. and European markets could burst because their rallies are heading in the opposite direction of their underlying economies and will have to face corrections “sooner or later.” Meanwhile, punting fears China's own massive financial bubble - as a reminder China's financial system is more than twice the size of the US making it the biggest bubble in the world - he said that China’s financial regulators are "walking a fine line of trying to curb risks at home while limiting disruptions from abroad as the economy opens wider to foreign capital." The CBIRC vowed in January to stay “ahead of systemic risks,” after capping bank lending to the property market, slashing shadow banking activities and claiming victory in unwinding a wild expansion in peer-to-peer lending."
(Bloomberg) "Existing-home prices of certain popular projects in Shanghai surged more than 30% last year, according to China Real Estate Information Corp.
“Guo’s comment reflects that Beijing wants a very stable financial market,” said Linus Yip, a strategist at First Shanghai Securities. “Stabilization is the ultimate goal of its monetary policy.”