Macro: Sandcastle economics
Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.
Chief Macro Strategist
Summary: The US equity market correction continued yesterday in the US before rebounding in early trading, with the Nasdaq 100 Index even closing the day on a high note for the day. The European session today will prove interesting for any positive contagion from this comeback after European equities suffered their worst drop in months yesterday. Precious metals suffered a steep sell-off yesterday, with their bounce from the lows cut a bit short, perhaps as the US dollar rallied hard yesterday.
What is our trading focus?
What is going on?
Argentina dollar bonds fell into distressed territory - The country had restructured its debt two weeks ago, however as the government tightened FX controls the bonds fell into pre-debt deal prices.
North America junk bond credit risk rises amid equity selloff- The CDX High Yield spread widened 25 basis points as the stock market slid yesterday. Companies had to pull their debt deals and for the first time since March the primary market saw no deals. We believe that this is a powerful indicator of market stress.
What we are watching next?
Economic Calendar Highlights for today (times GMT)
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