Stocks End Six-Day Streak 08-26-15

U.S. stocks ended their six-day slide, rallying strongly into the close. The six-day losing streak was the longest in more than 3 years. Included in the volatile stretch was the worst two-day fall since the dark days of the financial crisis. On the other hand, today’s gain also marked the biggest single-day jump in nearly four years. The large daily swings show the uncertainty of market participants.      Read more about Stocks End Six-Day Streak 08-26-15

EIA Report Sends Oil to Six-Year Low 08-19-15

In its weekly petroleum report, the EIA reported a surprising increase of 2.62 million barrels in commercial crude inventory. This marks the largest increase since April, and the current inventory of 456.2 million barrels remains near the highest summer level in at least the last 80 years. Read more about EIA Report Sends Oil to Six-Year Low 08-19-15

China Loosens Currency Reins Further 08-12-15

The People’s Bank of China (PBOC) surprised the markets by sharply devaluing the renminbi (aka the yuan) by 1.9 percent, the largest one-day adjustment on record. The PBOC sets a reference rate everyday, from which the yuan is allowed to trade up to 2 percent above and below. Yesterday the Chinese central bank set the reference rate to 6.2298 per U.S. dollar, which marks the lowest rate for the renminbi in more than 3 years. Read more about China Loosens Currency Reins Further 08-12-15

Jobs Data Surprises on the Downside 08-05-15

Payrolls processor ADP reported a surprisingly poor July. Private firms added only 185,000 jobs, according to ADP, well below consensus expectations of 215,000; the report missed even the lowest prediction amongst economists surveyed. The pace of hiring in small companies slowed dramatically compared to June and the manufacturing sector only added 8,000 jobs. Read more about Jobs Data Surprises on the Downside 08-05-15

The FOMC a Non-Event 07-29-15

The Federal Reserve’s Federal Open Market Committee (FOMC) concluded its latest policy-setting meeting today. Widely expected to keep interest rates unchanged, the FOMC did not disappoint. Read more about The FOMC a Non-Event 07-29-15

A Look at Gold 07-22-15

Gold has now reached a five-year low, having fallen under the $1,100 mark. The rout intensified on Monday as some curious trading activity rattled markets. In the Shanghai Gold Exchange (SGE), a mystery party (or parties) dumped roughly five tons of gold in a matter of seconds, forcing the gold price down $45 in an instant. Five tons is about one-fifth of the SGE’s average daily trading volume. Simultaneously, on the New York-based Comex, 7,600 August 2015 gold contracts, an abnormally high number of contracts for such a short period of time, changed hands. Read more about A Look at Gold 07-22-15

Greece, China, and Yellen 07-15-15

With nowhere else to turn, Greece reluctantly capitulated and agreed to a third bailout with strict austerity requirements. Angered by months of acrimonious negotiations and the sudden referendum, the Europeans demand that Athens approve the package no later than today. As we write this update, Greek Prime Minister Alexis Tsipras is trying hard to win support for the bailout in parliament amidst uproar and mutiny from his anti-austerity Syriza party. Read more about Greece, China, and Yellen 07-15-15

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