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To help contextualize this morning's market moves around the world, below are insights and analysis from our research and Hedgeye CEO Keith McCullough's Twitter feed.
S&P 500
FANG stocks "plunge most in 3 months, AAPL nears correction," writes Zero (H)Edge. Facebook was down -4.5% yesterday, after being up +42% year-to-date. Simply put, after an epic run, Facebook's stock corrected. Don't freak out. Here's a reality check...
U.S. Dollar
Bottoms are processes not points. See the higher lows in the U.S. dollar below. What could send the U.S. dollar higher? A hawkish Fed. New York Fed Head Bill Dudley went from dovish to hawkish on inflation yesterday saying that “temporary headwinds to inflation are fading.” Check out our forward-looking inflation outlook.
Oil
Will oil hold it's current bullish trend (via the recent breakout)? That too remains an open question.
Greece
The eurozone's top official Jeroen Dijsselbloem said yesterday that Greece and creditors in Europe are on a path toward completing bailout talks and a "clean exit" from fiscal supervision. "At the beginning of next year, we will design a mechanism to make sure that more debt relief will come in place over time if needed and if the growth is disappointing," Dijsselbloem said.
Europe is slowing.
South Korea
Despite concerns of nuclear war with North Korea, South Korea's Kospi is up +17% year-to-date (down -3% from the July high). President Trump tweeted over the weekend: "Just heard Foreign Minister of North Korea speak at U.N. If he echoes thoughts of Little Rocket Man, they won't be around much longer!"
In Case You Missed It...
What we think about supposedly "expensive Tech stocks"...
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Want to better understand the big picture macro market developments? Sign up for more information about our soon to be released weekly newsletter Market Edges.
