AUD is resisting the breakout for now. Good luck with that:
Brent rebounded:
Metals lol:
Miners (LON:GLEN) lol:
EM stocks (NYSE:EEM) hung on:
The best leading indicator for risk in the world, EM junk (NYSE:HYG), shows no signs of turning:
Get The App
Join the millions of people who stay on top of global financial markets with Investing.com.
Download Now
Treasury yields have popped following oil:
Stocks are trying the bear market bounce:
Yawn. I still don’t buy it. The same dynamic is in play that has killed every bear market bounce in a hurry. Oil leads it and before you know it the Fed is being pushed to hike some more, ending the bounce.
This is made worse not better by any Chinese recovery.
As well, the fact remains that US financial conditions are still not restrictive. Nowhere as tight as they were in the 2015 and 2018 commodity busts:
Is it any wonder jobs are still plentiful:
Total nonfarm payroll employment rose by 372,000 in June, and the unemployment rate remained at 3.6 percent, the U.S. Bureau of Labor Statistics reported today. Notable job gains occurred in professional and business services, leisure and hospitality, and health care.
…The change in total nonfarm payroll employment for April was revised down by 68,000, from +436,000 to +368,000, and the change for May was revised down by 6,000, from +390,000 to +384,000. With these revisions, employment in April and May combined is 74,000 lower than previously reported.
Some job cuts have started:
But wake me up when we start to see 50k headcount cuts at Walmart (NYSE:WMT) etc.
Until then the Fed tightens and AUD falls with commodities.
Written By:
David Llewellyn-Smith
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website. Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Get The App