US markets continue to show short-term strength, despite the Dollar’s recent rally, and as the Nasdaq is trading on fresh 10-week highs, even as European stocks are still trading just above their weekly lows. The S&P 500 and the Dow are back in the narrow trading range that developed 3-weeks ago and until they move out of those ranges, nor bears or bulls are in control.
As safe-haven assets sold off today in early trading, gold got pushed back below the key $1300 level, although the precious metal remained stable, still trading well above the May low. While risk measures are showing signs of normalization since the Turkish-Italian turmoil, the Turkish Lira turned volatile again, as we speculated yesterday, falling as much as 4% in less than a day. Last week’s highs are not in danger yet, but the problems of the country are not fixed, and in case of a global risk-off shift, the country could be swiftly back in the spotlight.
“Red Bar-Green Bar Madness”, that’s how traders refer to the current conditions in equities, as stock markets continue to go nowhere, but they are doing that in a quite volatile fashion, as investors have to digest a lot of conflicting catalysts. Just making sense of the Italian political show […]