Markets

Stock markets drifted overnight, Apple briefly became the most highly valued company of all time and the ECB and Bundesbank stuck their oar in water about the mechanisms for bond buying.

Global stock markets continued their Merkel induced rally and the S&P 500 is now within striking distance of the highs pre-Lehman Brothers in 2008 and even though many are fighting the rally Marc Faber might be right with his call that the S&P will head toward 1500 – then collapse, don’t forget.

Courtesy of Global Macro Monitor and posted with permission: Stunning price action during these low volume dog days of August.

Stocks were lower and the Euro strengthened overnight in what was essentially lacklustre trade over the past 24 hours.

Never let the facts get in the way of a good story seems an apt way to describe this current stock and risk market rally which continues to levitate above deteriorating global economic fundamentals.

Stock market sentiment was dominated overnight by further hopes of stimulus after the ECB said in a report that it is prepared to use “non-standard” monetary measures and Chinese inflation data suggested that the PBoC has plenty of room to stimulate further.

It was a fairly quiet night for stocks with the Dow closing essentially flat, the S&P 500 +0.1% and the NASDAQ down -0.1%.

By Chris Becker These daily updates need to be placed in context with the longer trends and drivers amidst the overall technical picture, so head to Macro Investor for a free trial.

A quiet night in terms of data saw a continuation of the afterglow of Friday’s reappraisal of Draghi’s success in isolating the Bundesbank.

Sentiment swung so violently between Thursday and Friday’s that my head is spinning.

Stock’s tanked and the Euro got slammed after Mario Draghi failed to deliver on the promised shock and awe.

The Fed did as expected, at least by me, which was nothing.

A sea of red across most markets overnight in what might be considered interesting price action with data in Europe poor but better in the US.

One day down and four to go this week and the euphoria of last week gives way to a little uncertainty about whether or not and when the ECB can start buying Spanish bonds.

This is the week when we find out if the European crisis has reached a point where central bankers and politicians are finally going to deliver on what to now have been very hollow promises.

Stock, bond and FX markets surged higher overnight while the US dollar came under renewed pressure as comments by ECB President Draghi lit a rocket under expectations and hope of central bank action.

FX markets in particular corrected recent weakness overnight but it is easy to be a bit baffled with what transpired.

By Chris Becker These daily updates need to be placed in context with the longer trends and drivers amidst the overall technical picture, so head to Macro Investor for a free trial.

At heart, I follow fundamentals but I was lucky enough to work with an old style technician who used to draw charts by hand and showed me the power of the technical approach to trading and the markets.

    By Chris Becker These daily updates need to be placed in context with the longer trends and drivers amidst the overall technical picture, so head to Macro Investor for a free trial.

The Eurozone’s woes weighed on markets in Asia yesterday and this weakness accelerated to the downside as European markets opened late in our day.

Reality bit hard on Friday night as the markets got a fresh dose of the pain in Spain.

    By Chris Becker These daily updates need to be placed in context with the longer trends and drivers amidst the overall technical picture, so head to Macro Investor for a free trial.

Apologies for no links today.