(As of 7:20 am PST)
US
stocks opened lower Monday after six consecutive weeks of gains, as market
participants reacted to Friday’s strong jobs report. Friday’s surprise report,
which showed a whopping 271,000 jobs added in October, has increased the
prospect of a Fed rate increase in December with analysts now predicting a 70%
probability of such an event occurring. Interest rates soared on Friday and are
continuing their uptrend today on the speculation of a near term rate hike. The
10 yr. US treasury yield is trading at 2.36% today after trading below 2% just
three weeks ago. China made headlines overnight as weak trade data caught Asian
investors by surprise. Chinese exports fell nearly 7% year-over-year in
October, while imports fell a shocking 18%. The weakness had speculators
predicting that Chinese authorities may introduce new stimulus measures to
strengthen the Chinese economy. The Shanghai composite index rallied 1.5%
Monday. European markets have been on a slow decline all day. It appears the
rate hike talk has heated back up and may be the excuse the market was looking
for to take some profits after a spectacular performance in October.
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