After three-straight down days, the bulls finally got some revenge.But first, the scoreboard:
S&P 500: +23.22
And now, the top stories:
- The show really got started in the middle of the night when Japan released a Chinese fishing boat captain. There was also another attempted yen intervention, and briefly the yen sunk, but it rebounded fast, showing just how much this particular currency has.
- European market activity wasn’t particularly violent, though the hits keep on coming to Ireland. Bond spreads and CDS spreads continue to widen. The latest is that a key MP, who had been supportive of the existing government, has withdrawn his support, meaning that the ruling coalition has just a four-seat majority, which is nothing. Whereas other European markets only moved modestly, Ireland was sharp to the downside.
- Very early in the morning, gold hit $1300.
- Petrobras successfully completed its massive $70 billion secondary offering.
- But in the futures were already heading higher, and that was before hedge fund manager David Tepper appeared on CNBC and presented his uber-bull case for stocks. Basically, as he sees it, the Fed has issued a gigantic free put, by virtue of its promise to intervene in the event of any economic weakness. So if the economy rallies, that’s great for stocks. And if the economy muddles along, the Fed will intervene, and that’s great for stocks, too! Win-win!
- There were two big US macro numbers today, which were durable goods at 8:30 (strong) and New Home Sales at 10:00 (which were mediocre… actually terrible).
- Basically, today was characterised by big time weakness in the dollar, and a mega rally in everything else.
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