Risk off on a thousand cuts (members)

Friday, 1 August 2014

Last night’s market action saw risk roar back to life. Stocks fell the better part of 2% in the US and the Australian dollar fell into the high 92s:

The US dollar broke out of a one year trading range:

Gold was dumped 1% but US bonds were flat at the long end but were bid at the short end. If you’re confused then you’re in good company. If this was another taper tantrum then bonds would be selling.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.