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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.
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%.
#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.
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.
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...
Want to better understand the big picture macro market developments? Get access to our weekly macro newsletter Market Edges.
