Weekly Summary
Global markets correlated as theory would predict: interest rates higher, the dollar stronger, and stocks and commodities lower.
Ten-year yields were up across the globe as the U.S. Treasury note yield approaches 4 percent on sticky inflation data. Consequently, world stocks fell across the board, with the S&P 500 down 2.7 percent on the week and the Dow now down 1 percent, YTD. Biotech, real estate, and retail were hammered.
The dollar index strengthened about 1 percent with big moves lower in the Chilean Peso (copper related) and the Russian Ruble.
Copper fell below $4.00 though natural gas put in an impressive rebound but the vapor is still down yuuge on the year.
We are baffled that the markets are baffled that disinflation may have bottomed. We see the issue as the myopic memory of the massive stock of central bank injections into the global economy coupled with too much focus on the price rather than the quantity of money, which is still at flood stage levels.
Global Macro Monitor 