The seeds escoliosis lumbar ejercicios of fiscal stimulus – marketpulsemarketpulse

Long-time readers will know, that I have argued that global central banks are reaching escoliosis lumbar ejercicios the limits monetary policy stimulus. Looking around the developed world, only the united states has achieved anything like a post-GFC normalisation of interest rates. Meanwhile, the developing world, with their pseudo-dollar-linked exchange rate policies and export-driven economic models, catch pneumonia every time the U.S. Gets man-flu.

With the notable exception of china, who has never been afraid to use government muscle to escoliosis lumbar ejercicios offset potential slowdowns, governments of the rest of the world since the GFC, have been content to outsource this job to their central escoliosis lumbar ejercicios banks in the form of monetary policy. Cutting interest rates and quantitative easing to those of us escoliosis lumbar ejercicios of the great unwashed. Fiscal stimulus (government spending), being a dirty word in the age of supposed government escoliosis lumbar ejercicios financial prudence, politicians put it in the too-hard box and took the easy route of letting central escoliosis lumbar ejercicios banks do the heavy lifting.

With interest rates at mostly post-GFC lows and global growth slowing through a combination of escoliosis lumbar ejercicios well-documented factors, something needed to change. A quick look at the negative interest rate mess europe escoliosis lumbar ejercicios and japan are in highlights that. Change though may well be on the horizon. Thailand posted its worst GDP numbers in five years yesterday escoliosis lumbar ejercicios but announced a $10 billion stimulus package. Germany surprised markets overnight by suggesting EUR 50 billion might escoliosis lumbar ejercicios magically become available for the same, and none too soon. The two-day drive from brisbane to sydney reveals some serious cash escoliosis lumbar ejercicios being spent to build a lot of roads.

U.S. Treasuries sold off overnight as the U.S. Treasury sounded out the appetite on the street for 50 escoliosis lumbar ejercicios and 100-year bonds. The long-forgotten trillion-dollar trump infra-structure project would mate nicely ultra-long dated U.S. Bonds. Anyone would think 2020 was a U.S. Election year. Watch this space.

Equity markets rallied overnight as china introduced a new prime escoliosis lumbar ejercicios rate that will lower the cost of corporate borrowing, while germany talked more government spending, and huawei got a 90-day reprieve. The markets also gee-ed themselves up for a super-dovish jackson hole opening address by jerome powell later this escoliosis lumbar ejercicios week.

The last point is fraught with danger, however. With over 90% of U.S. Quarterly results in, earnings have held up just fine, trade war or not. The FOMC committee did not unanimously agree to the last escoliosis lumbar ejercicios 0.25% cut by the fed. U.S. Economic data continues to perform blissfully, implying the economy is doing just fine, thank you. Against that backdrop, I struggle to see why chairman powell would hit the escoliosis lumbar ejercicios panic button at jackson hole this week. The financial markets could be setting themselves up for an escoliosis lumbar ejercicios ugly correction into the week’s end.

Treasury yields continued rising overnight as the panic of last escoliosis lumbar ejercicios week continued to unwind. It broadly supported the U.S. Dollar which continues to grind higher against its G-10 counterparts. In the absence of any other inputs, interest rate differentials alone will continue to support the greenback, one of my themes of 2019.

Oil’s wild ride continued overnight, ostensibly on saudi supply fears, but more likely driven by the return of risk sentiment escoliosis lumbar ejercicios to other markets, coupled with the possibility of more global stimulus measures. Brent crude rose 1.95% to $59.80 a barrel and WTI rose an impressive 2.50% to $56.35 a barrel.

The technical picture on both contracts shows plenty of room escoliosis lumbar ejercicios on the top-side available following last week’s aggressive correction. That should be tempered, however, by the release U.S. API crude stocks tomorrow morning. An unexpected rise, possibly taking the wind out of oil’s sails, if only temporarily.

With the present risk-seeking environment prevalent, gold could remain on the back foot until powell’s jackson hole opening address. I reiterate though; there is a real danger that mr powell does not escoliosis lumbar ejercicios give the uber-doves what they want. That could set up gold for quite a sharp end escoliosis lumbar ejercicios of week recovery.

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