Record equity valuations, container rates, Snowflake earnings
Equity valuations have hit the highest levels since the 1960s, but should that scare investors away from equities? We also take a look at the surging container rates and food prices indicating inflationary pressures. Finally, we comment on yesterday's Snowflake earnings.
FX Update: USD breakdown has unfolded, requires constant equity fuel
A US dollar breakdown has unfolded over the last couple of sessions, a notable development as major chart levels in a number of USD pairs have given way, but the move seems to require constant fuel from risk sentiment. Elsewhere, some of the usual correlations are misbehaving slightly and sterling is in its own world on fresh Brexit uncertainty.
Podcast: Is the US equity market primed for a crash?
Today we highlight the incredible surge in equity call option trading in the US this year and especially in recent weeks and ponder whether the underlying market structure risks a significant market dislocation event on any exogenous shock - i.e., a proper crash. We also highlight important equity, commodity and equity stories while encouraging everyone to keep an eye on US yields as a potential gamechanger if yields continue to rise. Today with Peter Garnry on equities, Ole Hansen on commodities and John J. Hardy hosting and on FX.
Market Quick Take - December 3, 2020
Markets were buffeted yesterday and overnight by both good news and bad, including in the latter column a weak November private payrolls survey in the US and its worst daily death tool ever in the Covid-19 pandemic. On the positive side and taking the US to a marginal new high daily close for the cycle, signs point to the US Congress finally moving toward agreement on a stimulus deal.
COVID-19 Vaccine: What is the timeline ?
There are good reasons for investors to wear rose-colored glasses right now. While economic risks remain elevated due to the wave of bankruptcies that is in sight, market optimism is rightly fueled by positive vaccine news and expectations of further monetary stimulus from the Federal Reserve and the European Central Bank as early as this month. With the United Kingdom being the first country to grant emergency approval to Pfizer's coronavirus vaccine, we publish today an update on a timeline for when a vaccine might be available for the rest of the world.