Our President’s Comments

7/19/19

Internal Markets Commentary

The State of the Markets

  • Yesterday was a bit of a balancing act between the stories about US and China talks stalling, mixed earnings but bumper manufacturing data in the US, and then late in the session dovish comments from NY Fed President Williams, though those were somewhat unusually walked back overnight by the NY Fed. Still, his comments sparked a rally in rates and equities which retraced partly but still ended stronger. The end result was a rebound for US equity markets with the S&P 500, DOW, and NASDAQ ending +0.36%, +0.01% and +0.27% while in Europe the STOXX 600 ended -0.22% with earnings also playing a role. Indeed, the DAX retreated -0.92% largely due to poor earnings results from SAP (-5.61%). Treasury yields were trading higher for most of the session on the stronger economic data, but ultimately ended down -2.1bps after the Fedspeak. In Europe, 10y Bunds (-2.1bps) rallied further back into negative territory, closing at -0.315%, and 10y BTPs ended -4.0bps at 1.550% and to their lowest level since October 2016. That also put the spread between the two at 186bps, right around the lowest level in a year.

7/18/19

Internal Markets Commentary

The State of the Markets

  • The S&P 500 closed down -0.65% last night and below the 3k level again while there were similar declines for the DOW (-0.42%) and NASDAQ (-0.46%).
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