Author: Stephen Innes

Stephen Innes
Stephen Innes

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Recent and archived work by Stephen Innes for The Bull:

Tax Talk Rattles Sentiment

US equities weaker Thursday, S&P fell 0.9%, giving back the gains seen Wednesday. Weighing on sentiment: a Bloomberg report suggesting the US President considers an almost-doubling of capital gains taxes for high-income individuals. US10Y yields down 2bps to 1.54% Of course, this isn’t really “news.” Actually, wait — it is news, but it’s not new….

More diverse opinions within and between central banks could

The Bank of Canada (BoC) joins Norges Bank in setting itself apart from other G10 central banks by validating market expectations for earlier tightening. The BoC announced a taper of its government-bond purchases, adjusting its pace of weekly purchases to CAD3 bn from CAD4 bn. This is best characterized as less dovish rather than outright…

Stocks still plumbing the lows

Global stocks are still plumbing the lows after renewed virus concerns spooked markets overnight. Small caps suffered a second consecutive day of underperformance, with traditional defensive, Utilities and REITs closing 1% higher. Most reopening baskets closed 3% lower each, as travel advisory and disappointing United Airlines earnings weighed on equities. In more positive news, Johnson…

Bond Sellers Find There Feet triggering cross asset profit taking

It seemed that the fixed income bears returned from their Easter hibernation yesterday as the selling pressure on fixed income resumed. No one seemed to point to a single headline to explain the reversal, so investors were treated to a range of possible reasons ranging from supply to a shift in ECB policy. Without wishing…

Xi Jinping in call for greater global economic integration

Markets are getting a little bit of unified bonce for the olive branch comments after Chinese President Xi Jinping in a video speech at the Boao Forum today called for greater global economic integration and warned against decoupling. Xi said “International affairs should be conducted by way of negotiations and discussions… One or a few…

Stocks at record highs

US equities closed higher on Friday and will kick off the week at record highs, with investors digesting the recovery despite mounting concerns about new Covid-19 variants. But with Covid never far from the conversation, investors could tread cautiously to start the week. Following the miss on US consumer sentiment in April, with outperformance in…

Gold shines as yields fall

Gold bullion likes the sound of falling US yields overnight and it didn’t take much other than additional US time zone liquidity for gold to kick into a higher gear and catch up with the significant moves in the currency and bond market since quarter-end. And for the gold purists, they were on this move…

Stocks fly higher on strong economic data tailwind

US indices charged ahead towards new records overnight, powered by a series of first-rate earnings and a dazzling run of US economic data. The rollout of Covid-19 vaccines and plentiful government and consumer spending also provided support, suggesting, dare I say, the market can go higher, especially if active managers start entering the buys. Retail…

Commodity currencies rally

Commodity G10 rallied broadly on the back of surging oil price after the truly bullish EIA report, while the Canadian dollar is lagging behind its peer. The spiking Covid cases and new lockdown in Toronto weigh on the currency and lower the probability of BOC taper announcement in their decision next week. And while the…

Australian employment rises; Coinbase IPO

Australian employment rises Australian employment rises a higher-than-expected 70.7k in March, vs 35.0k consensus, 88.7k last, topping estimates for the second consecutive month. The Australian dollar, like its G10 FX peers more broadly, is having a good week on falling US real yields and higher oil prices. Positive domestic data should add to AUD upside,…