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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.
#ChinaSlowing
Chinese stocks got clobbered to year-to-date lows this morning. Growth continues to slow in China and the ripple effects are being felt in Emerging Asian equity markets.
https://twitter.com/KeithMcCullough/status/1001752677825613824
https://twitter.com/KeithMcCullough/status/1001756784158236672
https://twitter.com/KeithMcCullough/status/1001753223043088384
US Dollar #Bottoming
The big story that's been hitting Emerging Market equities, rates and currencies around the globe is the strengthening U.S. dollar. The dollar is up 6.8% from its February lows. The peak-to-present year-to-date decline in Emerging Markets stocks (EEM) is -12.9%.
https://twitter.com/KeithMcCullough/status/1001758972766961664
#EuroPeSlowing
While the media freaks out about the latest Italian political risk, CEO Keith McCullough is here to remind you of a simple fact...
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"When do secular (demographics, debts, deficits) and political issues really matter to macro markets? A: when cyclical growth is slowing. That’s not new this morning. Neither is the basic reality that market risks happen slowly sometimes, then all at once." |
#EuropeSlowing is now an obvious fact.
https://twitter.com/KeithMcCullough/status/1001757552160526344
https://twitter.com/KeithMcCullough/status/1001750218877161472
https://twitter.com/KeithMcCullough/status/1001749811148869632
Oil
Oil is up +12% year-to-date, even with the -8% YTD peak-to-present drawdown. This has been driving inflation, inflation expectations and hence rates all year.
https://twitter.com/KeithMcCullough/status/1001758086040899584
https://twitter.com/KeithMcCullough/status/1001755819950657537
BEFORE YOU GO...
The mainstream media is waking up to our (now 11 months old) call on #EuropeSlowing. Here's the backstory behind the call...
https://twitter.com/KeithMcCullough/status/1001531600151175168
Want to better understand the big picture macro market developments? Get access to our weekly macro newsletter Market Edges.
