Is Credit Suisse Going the Way of Lehman?
What’s in Today’s Report:
- Is Credit Suisse Going the Way of Lehman?
- Chart: 10-Yr Yield Breaks Critical Uptrend
- ISM Manufacturing Takeaways
U.S. stock futures and European equities are solidly higher this morning while bond yields continue to pull back with the dollar amid renewed hopes of a “less-hawkish pivot” by global central banks.
The RBA was seen as dovish overnight, raising their policy rate by 25 basis points vs. (E) 50 bp which is helping pressure global bond yields and support continued risk-on money flows this morning.
Economically, EU PPI rose to 5.0% vs. (E) 4.9% in August but the fact that the print was not a “hotter” surprise is also adding a tailwind to global equities this morning.
Today, there are two economic reports to watch: Factory Orders (E: 0.2%) and JOLTS (11.150M) and multiple Fed officials speaking: Williams (9:00 a.m. ET), Logan (9:00 a.m. ET), Mester (9:15 a.m. ET), Jefferson (11:45 a.m. ET), and Daly (1:00 p.m. ET).
As long as the pullback in bond yields and the dollar continue over the course of the day, stocks should be able to extend yesterday’s gains however the pace of the early quarter rebound has approached an unsustainable level and at some point, we will need to see some consolidation across asset classes.