As usual the first week of the month is flooded with data, We had good data out of the UK today with PMI Manufacturing coming in above 53, and above expectations which has given an offer tone to the Gilts, and ever so slight steepening in the Short Sterling.
The UK and European STIRs still pretty much are difficult to trade so the focus has been more on Eurodollars, which has been better for scalping and the volume has also been alot better.
The main action has been in the Equity Space with around a 10% rally in alot of the major indices showing that QE and cheap money is alive and kicking, and investor appetite for yield is still in force. The small correction proceeding the rally was the catalyst that the bulls were waiting for it seems, as now they have made that up as quick as it went down and the US indices have all hit new highs for the year in the process. There doesn't seem to be much let up in the buying of these indices and the way it looks I can see this just going up with every pullback bought with more vigor. I hope I'm wrong as I would love more two sided markets but the past 2 years have been this way so cant see there being any change in the short term.
Looking forward, we have ISM Mfg this afternoon, followed by ECB on Thursday and NFP on Friday, so should be a good week for opportunities.
The UK and European STIRs still pretty much are difficult to trade so the focus has been more on Eurodollars, which has been better for scalping and the volume has also been alot better.
The main action has been in the Equity Space with around a 10% rally in alot of the major indices showing that QE and cheap money is alive and kicking, and investor appetite for yield is still in force. The small correction proceeding the rally was the catalyst that the bulls were waiting for it seems, as now they have made that up as quick as it went down and the US indices have all hit new highs for the year in the process. There doesn't seem to be much let up in the buying of these indices and the way it looks I can see this just going up with every pullback bought with more vigor. I hope I'm wrong as I would love more two sided markets but the past 2 years have been this way so cant see there being any change in the short term.
Looking forward, we have ISM Mfg this afternoon, followed by ECB on Thursday and NFP on Friday, so should be a good week for opportunities.
No comments:
Post a Comment