I record the Closing Bell videos on Friday, so you will know more than me about how the markets have reacted to news out of Jackson Hole.
The central banker chat fest is often a market-moving event, and many markets are neatly poised at major levels.
In today’s Closing Bell video, I show you the current set up in the US Dollar Index, US 10-year bonds, gold, and the S&P 500.
The US dollar is close to confirming a monthly buy signal, US 10-year bond yields are heading towards 15-year highs, gold looks like it wants to rally but remains bearish on weekly charts, and stocks could fall further.
The situation in China is the wild card that could cause some serious volatility down the track. If their growth surprises to the downside and we see money trying to get out of the yuan, we may see gold and Bitcoin [BTC] catching a strong bid.
US growth has been sending mixed messages lately with some surprisingly strong numbers and a few weaker ones such as the recent PMI (Purchasing Managers Index) release, which was weaker than expected in the UK, Europe, and the US.
It’s a tricky situation for the central bankers to navigate. Do they want to ignite animal spirits or continue to take the heat out of inflation?
Market direction over the next few months will probably be a result of the market reaction to Jackson Hole, so we all just have to grab some popcorn and see how things play out over the next week or so.
Until next week,
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Murray Dawes,
Editor, Money Weekend
