A Quick Look At What Is Happening Around The World, Plus A Note On Gold
A Quick Look At What Is Happening Around The World, Plus A Note On Gold from King World News
With the Dow trying to mount a rally, the dollar trading lower and gold higher, here is a look at what is happening around the world.
A Look At What Is Happening Around The World
March 13 (King World News) – Here is what Peter Boockvar wrote today as the world awaits the next round of monetary madness: After 9 straight weeks of increases in the number of Bulls according to II, they retreated a touch this past week to 52.4 from 52.9. The number of Bears rose by .8 pts to 21.4 with a 31 pt spread between the two still pretty wide. This is a marked difference from the negative spread of 4.7 on January 2nd after the December market selloff. Bottom line as stated the last few weeks, from strictly a contrarian standpoint, the wide spread between bulls and bears is no longer a help to the market. Yesterday the S&P 500 closed at 2792. Three weeks ago Friday when the spread got stretched again we closed at 2793.
The dip in the average 30 yr mortgage rate to 4.64%, the lowest since February 2018, helped to boost purchases according to the MBA. They grew by 4.3% w/o/w but are still only up by 1.7% y/o/y. Thus at least right now, we really haven’t seen much of a bounce in home buying in response to the drop in mortgage rates. Refi’s didn’t budge, falling by .2% w/o/w and are down 4.4% y/o/y as comparison’s are really easy…
The industrial powerhouse that is Japan remains under economic pressure. The always volatile core machinery orders in January fell 5.4% m/o/m, well worse than the estimate of a decline of 1.5% and follows a .1% drop in December. This marks the 4th month in the past 5 of declines. While this number certainly bounces around month to month by a lot, it still is a key capital spending data point. The Nikkei didn’t like it and fell 1% overnight and the 10 yr JGB yield got further negative by 1.4 bps to -.042% and is now the most negative since November 2016. The yen is little changed. China’s stock market took a breather too.