Thursday, May 7, 2015

Economic Journal - Thursday, 5/7/2015

(As of 7:10 am PST)

US stocks are meandering around the unchanged line after another day of losses yesterday. Global equity markets suffered declines following a jump in European bond yields and remarks yesterday from Fed Chairwoman, Janet Yellen, that US stock valuations appeared high. Asian markets began Thursday’s trading with steep losses and never recovered, while European indexes are climbing back toward the unchanged line. In the US, investors remain cautious ahead of tomorrow’s non-farm payrolls jobs report. Data today showed weekly jobless claims rose slightly from the prior week. Recent weakness in equity markets has been pegged to the surprise move in European bond yields as Eurozone bonds continue to get battered on changes in inflation outlook. The increase in yields has hit stocks in Europe this week and seems to be holding investors at bay in the US as well. Gold is down slightly today while oil prices are back below $60 per barrel. Interest rates are down while the US dollar is higher. Expect the cautious tone to persist today as investors position themselves ahead of tomorrow’s highly anticipated jobs report.  

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