Although the yield on the US Treasury bonds grew on Monday, it wasn’t the same pace compared to the last week. This calmed the markets somewhat, and they returned to their favorite fun: buying everything in risky asset markets. As a result, the stock markets grew in price, as well as the cryptocurrency market, and the commodity markets were strengthening.
An...
Price dynamics was of primary interest during the past week considering the entire spectrum of financial markets. The US Treasury yields’ sharp rise triggered the worst Nasdaq day in the last 4 months, resulting in the worst month for gold in the last 4 years.
There were no reasons for the increase in the yield of US Treasury bonds yield. Yes, the head of the...
This week the rise in oil prices looked the most uncontested in fundamental terms. The news abundance in favor of the oil price rise is meant. Record frosts in the USA hit several states so hard that the oil production level in the country fell by almost 40% (!). Yes, it’s temporary, but still, it matters. Accordingly, the US oil reserves have declined quite...
Since February 2020, the yield on the 10-year US Treasury bond has hit new highs. On the one hand, the safe haven assets exit continues. On the other hand, an alternative to buying stocks at insane prices by purchasing risk-free assets with a profitability many times higher than it was a few months ago is becoming more obvious. It may well be the reason for a...
The main event of yesterday was the Bank of England meeting but it didn’t bring any special surprises. The rate was left unchanged, and the monetary policy parameters, too. But the pound finally strengthened rather sharply. It’s because the Central Bank head said that the Bank of England negative rates in the near future is not an option.
Also, there were...
Yesterday the Treasury bonds yield growth had an extremely negative effect on the US stock market buyers. Along with the explanations for this listed in yesterday’s review, an increase in profitability simply means the appearance of an investment alternative, being formally risk-free. And this is an alternative to buying insanely expensive and overvalued risky...
The main news event yesterday was the Fed Chairman Jerome Powell’s speech in the Senate made for the banking committee. The sharp rise in Treasury yields in recent years has provoked fears in the markets of an inflation spiral. The rise in inflation would have its consequences to tighten the monetary policy of the Fed (in the end, the Central Bank’s main goal is...
The world keeps on getting ready for economic recovery and for how it can be discounted for future processes. The commodity markets, literally bursting in recent months, have become an object of discounting. The week kicked off with copper futures topping $9,000 per ton for the first time since 2011. Zinc futures hit a two-year high, while aluminum futures hit...
The main movements in the past week show a rather sharp decline on most risk-free assets fronts, traditionally accompanied by an increase in risky assets. In terms of news, freezing temperatures in Texas have distracted attention from the usual top-level topics like the US stimulus package fate and pandemic news.
So, gold underwent quite evident losses last week,...
Recently, talks about the emergence of a new raw materials super cycle have intensified. It’s actually against the background of rising prices for main commodity items. The reasons seem clear—the rise in prices amid an abundance of cheap money. But it is somewhat strange that at the same time the analysts voicing the idea of this very supercycle don’t touch its...
Monday was a day off in the United States, so it wasn’t overly busy. Nevertheless, there were some interesting movements in Dogecoin cryptocurrency, for instance. Musk struggled to catch up with the hype around it. As a result, even this cryptocurrency’s creator began to twist his finger at his temple with no understanding what was happening. He just can’t get how...
The cannabis market was the hottest topic of the past week. According to some information, it became the target of a new attack from the Reddit users. Perhaps, it’s just an attempt to buy shares of companies in a potentially very promising market. Judging by the dynamics of Tilray shares this is still the first option. Its value doubled in less than a week, and...
Reddit’s retail investors seem to have found some new fun. Besides, unlike the previous venture with half-dead companies like GameStop, everything looks more interesting now. These are cannabis producing companies such as Tilray, Canopy Growth, and Aphria.
As a result, Tilray shares doubled in just a few days, but fell by 50% yesterday. That’s the GameStop genre...
Inflation hasn’t become the main newsmaker, yet. It’ll inevitably become, as economic theory, says. But its time hasn’t come, yet. And yesterday's US CPI data is clear evidence. Consumer inflation came out exactly in line with analysts’ forecasts. At the same time, the rate of its growth is 1.4% on an annualized basis. Of course, it’s not enough to wake up the...
Tesla bought Bitcoins for $1.5 billion to maximize profit from cash, as we wrote yesterday. Considering that buying Bitcoin at current prices is by no means a conservative risk-free investment. So, we have the following somewhat conspiracy theory. Musk desperately needs a Tesla’s profitability demonstration, which so far is present only formally on paper. If it...
The week kicked off with another optimism burst for financial markets. Any special reasons don’t seem to emerge: the issue of incentives for the United States is still in progress, industrial production in Germany showed zero growth in December after 7-months continuous growth, the Hong Kong economy had showed the worst result for the whole history by the end of...
The main event for financial markets last week was the end of the epic confrontation between David (small investors from Reddit) and Goliath (professionals from Wall Street). It’s from the hype viewpoint. David, despite the whole army of sympathizers, lost—yes, this is the real world, not the Bible.
It’s evident when using GameStop stock dynamics as a valuation...
The markets breathed out in relief yesterday. The fear associated with uncontrolled attacks on retail investors is gradually disappearing. This is due to news that “the attacks organizer lost $17 million in the last two days.” Also, it’s because of the price dynamics for shares-targets attacked, as well as information that heavy artillery is involved in the case....
