It is nonetheless a massacre in markets nevertheless it’s not the form of reckoning we’re seeing in Japan.
Just a few hours in the past, it was trying bleak however some sturdy arms have waded in. The primary trace might need been the bounce in the Australian dollar. That is been adopted by a bounce in Treasury yields, oil and now in inventory markets.
The S&P 500 continues to be down 3% and the Nasdaq down 4% however shares are off the lows.
The info and commentary within the US session right this moment was calming and a reminder that there is no such thing as a monster beneath the mattress. Sure, the financial system is slowing and could also be heading for a recession nevertheless it’s not some form of financial crash (at the least at this level) and the US monetary system is stable.
There may be nonetheless 500 bps of ‘Fed put’ out there and it may all be put to work with the best way inflation expectations are coming down.
I believe the deleveraging will proceed as a result of there simply is not an ideal motive to purchase as long as the Fed is behind the curve however at the least there may be some two-way motion.
